POLAND

NATIONAL STRATEGIC
REFERENCE FRAMEWORK
2007–2013

in support of growth and jobs

NATIONAL COHESION STRATEGY

Document adopted by the European Commission

on 7th May 2007

Ministry of Regional Development

WARSAW, May 2007

1
 The works on the National Strategic Reference Framework for 2007–2013
commenced in 2005 in the Ministry of Economy and Labour, which at the time
being was responsible for the cohesion and development policies. The last
version of this document was elaborated in the Department of Structural Policy
Coordination in the Ministry of Regional Development headed by Minister Grażyna
Gęsicka. The activities on the NSRF preparation were supervised by Jerzy Kwieciński,
Undersecretary of State in the Ministry of Regional Development. The members of
the editorial team, headed by Piotr Żuber, were: Renata Calak, Daniel Baliński,
Stanisław Bienias, Beata Grabowska−Markiewicz, Katarzyna Hermann−Pawłowska,
Maciej Kolczyński, Jacek Kotrasiński, Julita Sekular, Piotr Siewierski, Kamila
Wadecka, Remigiusz Wiącek, Aldona Zagaja and Karolina Zielonka.

For edition of the final version of NSRF very important were remarks submitted
within the wide process of social consultations of the subsequent versions of this
document involving public and private stakeholders such as self−government,
professional and expert bodies.

Publisher:
Ministry of Regional Development
Wspólna 2/4, 00−926 Warsaw, Poland
www.mrr.gov.pl
www.funduszestrukturalne.gov.pl

ISBN: 978−83−60916−35−3

Project cofinanced by the European Union

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Dear Sirs,

I am very honored and pleased to present the National Strategic Reference Framework for 2007–
2013. The document lists the national priorities, where the main stream of the European funds is to be
allocated in 2007–2013 programming period.

Thanks to the availability of the European funds Poland faces a great possibility of a quick develop−
ment and a possibility to improve the level and quality of living of its citizens and to reduce the develop−
ment gap between Poland and Western European countries. Due to the EU membership the next few
years look very promising for Poland. Within the next seven years Poland is going to be the largest
beneficiary of the EU economic and social coherence policy, which means that EUR 67 billion, out of
more than EUR 347 billion in the EU budget for this purpose, have been granted to Poland. Together
with the national financial contribution, Poland has at its disposal the total amount of EUR 85.6 billion for
investments.

The National Strategic Reference Framework assumes reducing the civilization gap and spatial
developmental disproportions, as well as establishing a modern, competitive and innovative economy
and improvement of the living conditions of the society. What is more, according to the plans the 64 per
cent of Polish spending will contribute to the accomplishment of the pro innovative Lisbon Strategy.

The activities that are going to be undertaken within the National Strategic Reference Framework
in 2007−2013 are on unprecedented scale. As fas as financial outlays are concerned, the Operational
Programme: Infrastructure and Environment is the largest programme in the EU history, while the Oper−
ational Programme: Human Capital is the largest programme within the area of the European Social
Fund. The implementation of the National Strategic Reference Framework will result in a higher GDP
growth, achieving GDP per capita equal to two thirds of the EU average in 2015, 3 million of new
workplaces, developing a network of express roads and motorways, improvement of the natural
environment, educational system that better meets the requirements of the labour market and more
innovative companies.
© Bundesministerium für Wirtschaft und Technologie (BMWi)

© Bundesministerium für Wirtschaft und Technologie (BMWi)

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 The approval of the National Strategic Reference Framework by the European Committee com−
pletes two years of work of the government, local governments and social partners, efforts of several
thousand people. I would like to pay tribute to all these people who helped to prepare this paper and
I also hope for a long−term and fruitful cooperation in achieving priorities presented in the National
Strategic Reference Framework. The achievement of the ambitious goals set in this countrywide invest−
ment plan is a real challenge for all of us and it depends on all of us, if we make use of this historical
chance. I am deeply convinced that common involvement will result in a fast development of our country.

dr Grażyna Gęsicka

Minister
of Regional Development

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THE COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, on 7 May 2007

K (2007) 1984 final version

NOT FOR PUBLISHING

COMMISSION DECISION

of 7 May 2007

approving some elements of the national strategic reference framework

for Poland

CCI 2007PL16UNS001

(ONLY THE POLISH LANGUAGE VERSION IS AUTHENTIC)

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 COMMISSION DECISION
of 7 May 2007
approving some elements of the national strategic reference framework
for Poland

CCI 2007PL16UNS001
(ONLY THE POLISH LANGUAGE VERSION IS AUTHENTIC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community,
Having regard to the Council Regulation (EC) No 1083/2006 of 11 July 2006 laying down general
provisions on the European Regional Development Fund, the European Social Fund and the Cohesion
Fund and repealing Regulation (EC) No 1260/19991, and in particular article 28 item 3 thereof,
Whereas:
(1) On 7 December 2006, within five months from the adoption of the Council Decision No 2006/702/
EC of 6 October 2006 on Community strategic guidelines on cohesion2, Poland provided the Com−
mission with the national strategic reference framework, after consultation with respective partners
referred to in article 11 of the Regulation (EC) No 1083/2006. These national strategic reference
framework was prepared in cooperation with the Commission.
(2) The Commission provided no comments pertaining to article 28 item 2 of the Regulation (EC)
No 1083/2006.
(3) The analysis of the social and economic conditions presented by Poland in the national strategic
reference framework is coherent with the national reform programme. The national strategic refer−
ence framework analyzes the inequalities of the social and economic development among regions
and sectors with regard to the trends of the European and global economy, social inequalities and
unprivileged groups, urban areas, differentiation of economic activities in rural areas and fishing−
dependent areas. From the perspective of the whole territory, the analysis points out to the driving
forces and developmental trends together with the sectoral and regional dimension of the social
and economic development.
(4) The strategy presented in the national strategic reference framework covers the programming
period of 2007−2013. It determines the priorities and objectives to be accomplished by the opera−
tional programmes. The strategy of the national strategic reference framework is coherent with the
Community objectives within the scope of the coherence policy listed in the decision no 2006/702/
EC together with integrated guidelines on the growth and employment presented in the Council
Decision no 2005/600/EC of 12 July 2005 on Guidelines for the employment policies of the Mem−
ber States3, as well as respective recommendations on employment issued in accordance with
article 128 section 4 of the Treaty.
(5) The national strategic reference framework emphasizes, that in the operational programmes men−
tioned on the list that was presented by Poland, 63.9% of expenditures on the objective of Conver−
gence should be allocated in the category of expenditures referred to in article 9 item 3 of the
regulation no (EC) 1083/2006 and Attachment no IV thereto.

1
OJ L 210, 31.7.2006, p. 25. Regulation amended with regulation (EC) No 1989/2006 (OJ L 411, 30.12.2006, p. 6).
2
OJ L 291, 21.10.2006, p. 11.
3
OJ L 205, 6.8.2005, p. 21.

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(6) In accordance with article 16 of the regulation no (EC) 1083/2006 the strategy ensures promot−
ing of the equal status of men and women and referring to gender issues, as well as taking
appropriate measures in order to prevent discrimination due to gender, race or ethnic origin,
religion or beliefs, disabilities, age or sexual preferences at different stages of the funds’ im−
plementation.
(7) The national strategic reference framework includes details of mechanisms and procedures to
ensure coordination between the European Regional Development Fund (ERDF), the European
Social Fund (ESF) and the Cohesion Fund and respective national, sectoral and regional policies
of Poland. The framework includes also detailed information to ensure coordination between this
assistance and the assistance from the European Agricultural Fund for Rural Development and the
European Fisheries Fund. Moreover, the framework presents also the details on the main princi−
ples to divide activities supported from these funds from the interventions of the European Invest−
ment Bank and other present financial instruments.
(8) According to article 50 of the regulation no (EC) 1083/2006 Poland decided to establish the
national reserve for the accomplishment of the objective of Convergence.
(9) According to article 28 of the regulation no (EC) 1083/2006 the Commission acknowledged the
national strategy and selected priority areas and verified their compliance with the list of the opera−
tional programmes.
(10) As far as the indicative annual allocation of each fund for separate programmes is concerned, the
Community’s financial contribution is available for the entire programming period and its division
into separate years was determined in EUR. The annual division is in accordance with the respective
financial perspective for 2007–2013.
(11) In case of the Convergence objective, the level of expenditures should be defined to be in compli−
ance with the additionality principle.
(12) In case of the Convergence objective, in accordance with article 15 items 2 and 3 of the regula−
tion no (EC) 1083/2006, the Commission and Poland set the level of public and equal structural
expenditures, to be obeyed by the membership state in all respective regions in the program−
ming period of 2007–2013. The amount of average annual real expenditure made in the previous
programming period amounted to EUR 6 502 000 000. On this basis the target level of expen−
ditures was set in reference to the general macroeconomic environment where the financing
takes place.
(13) In case of the Convergence objective, the strategy of the national strategic reference framework
emphasized activities that are expected to increase the performance of the Polish administration,
HAS ADOPTED THIS DECISION:

Article 1
1. The national strategic reference framework presented by Poland is acceptable. The Commission
acknowledges the national strategy presented by Poland. The following priority areas are to by
supported by the funds:
(1) Improving the functioning standard of public institutions and development of partnership mecha−
nisms,
(2) Improving the human capital quality and enhancing social cohesion,
(3) Establishment and modernisation of technical and social infrastructure crucial for better competi−
tiveness of Poland,
(4) Improving the competitiveness and innovativeness of enterprises, including in particular the manu−
facturing sector with high added value and development of the services sector,

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 (5) Increase of the competitiveness of Polish regions and preventing their social, economic and terri−
torial marginalisation,
(6) Balancing growth opportunities and supporting structural changes on rural areas.
2. The list of operational programmes for the Convergence objective used for the strategy to be imple−
mented, presented in attachment I, is coherent with the priority areas referred to in item 1.

Article 2
1. The contribution from the funds for the accomplishment of the priority areas selected for common
activities of the Community and Poland is set for EUR 66 553 157 091 for programming period
2007–2013.
2. The indicative initial allocation of the Community’s support into separate funds is as follows:

ERDF EUR 33 338 323 218

ESF EUR 9 707 176 000
Cohesion Fund EUR 22 176 353 774

The national performance reserve is established for the Convergence objective. The amounts of the
national performance reserve are as follows:

3% of the structural funds 3% of the structural funds

contribution for the contribution for the objective
Convergence objective of Regional Competitiveness
and Employment

National performance reserve 1 331 304 099 0

3. The indicative annual allocation of each fund for separate programmes is specified in attachment II.

Article 3
For the Convergence objective, the level of expenditures in order to comply with the additionality princi−
ple referred to in article 15 of the regulation No (EC) 1083/2006, is set for EUR 7 940 000 000 in the
current prices in 2006.

Article 4
Activities aimed at an improvement of Polish administration are specified in attachment no III.

Article 5
This decision concerns the Republic of Poland.

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Done at Brussels, 7 May 2007

For the Commission

Danuta Hübner
Member of the Commission

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 ATTACHMENT I

List of operational programmes for the Convergence objective

2007PL051PO001 Operational Programme: Human Capital

2007PL161PO001 Operational Programme: Innovative Economy

2007PL161PO002 Operational Programme: Infrastructure and Environment

2007PL161PO003 Operational Programme: Development of Eastern Poland

2007PL161PO004 Operational Programme: Technical Assistance

2007PL161PO005 Regional Operational Programme of Dolnośląskie Voivodeship

2007PL161PO006 Regional Operational Programme of Kujawsko−Pomorskie Voivodeship

2007PL161PO007 Regional Operational Programme of Lubelskie Voivodeship

2007PL161PO008 Regional Operational Programme of Lubuskie Voivodeship

2007PL161PO009 Regional Operational Programme of Łódzkie Voivodeship

2007PL161PO010 Regional Operational Programme of Małopolskie Voivodeship

2007PL161PO011 Regional Operational Programme of Mazowieckie Voivodeship

2007PL161PO012 Regional Operational Programme of Opolskie Voivodeship

2007PL161PO013 Regional Operational Programme of Podkarpackie Voivodeship

2007PL161PO014 Regional Operational Programme of Podlaskie Voivodeship

2007PL161PO015 Regional Operational Programme of Pomorskie Voivodeship

2007PL161PO016 Regional Operational Programme of Zachodniopomorskie Voivodeship

2007PL161PO017 Regional Operational Programme of Wielkopolskie Voivodeship

2007PL161PO018 Regional Operational Programme of Świętokrzyskie Voivodeship

2007PL161PO019 Regional Operational Programme of Śląskie Voivodeship

2007PL161PO020 Regional Operational Programme of Warmińsko−Mazurskie Voivodeship

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 ATTACHMENT II Indicative annual allocation

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EU contribution
Operational Programme Fund
Total 2007 2008 2009 2010 2011 2012 2013
The Convergence Objective
16 Regional Operational Programmes: 16 555 614 188 2 320 878 674 2 375 226 449 2 429 216 368 2 397 526 540 2 352 757 295 2 309 415 992 2 370 592 870
dolnośląskie 1 213 144 879 170 066 906 174 049 345 178 005 561 175 683 428 172 402 874 169 226 955 173 709 810
kujawsko−pomorskie 951 003 820 133 318 188 136 440 086 139 541 428 137 721 070 135 149 391 132 659 737 136 173 920
lubelskie 1 155 854 549 162 035 558 165 829 927 169 599 313 167 386 841 164 261 210 161 235 273 165 506 427
lubuskie 439 173 096 61 566 274 63 007 965 64 440 163 63 599 522 62 411 922 61 262 201 62 885 049
łódzkie 1 006 380 910 141 081 325 144 385 012 147 666 945 145 740 588 143 019 160 140 384 533 144 103 347
małopolskie 1 290 274 402 180 879 448 185 115 082 189 322 828 186 853 057 183 363 932 179 986 094 184 753 961
mazowieckie 1 831 496 698 256 751 672 262 764 000 268 736 738 265 230 990 260 278 305 255 483 592 262 251 401
opolskie 427 144 813 59 880 067 61 282 272 62 675 245 61 857 628 60 702 554 59 584 324 61 162 723
podkarpackie ERDF 1 136 307 823 159 295 364 163 025 567 166 731 209 164 556 152 161 483 379 158 508 614 162 707 538
podlaskie 636 207 883 89 187 951 91 276 456 93 351 209 92 133 416 90 413 000 88 747 457 91 098 394
pomorskie 885 065 762 124 074 542 126 979 983 129 866 293 128 172 149 125 778 779 123 461 745 126 732 271
śląskie 1 712 980 303 240 137 237 245 760 506 251 346 748 248 067 857 243 435 662 238 951 215 245 281 078
świętokrzyskie 725 807 266 101 748 602 104 131 239 106 498 187 105 108 887 103 146 179 101 246 072 103 928 100
warmińsko−mazurskie 1 036 542 041 145 309 518 148 712 216 152 092 508 150 108 418 147 305 429 144 591 843 148 422 109
wielkopolskie 1 272 792 644 178 428 736 182 606 983 186 757 718 184 321 409 180 879 558 177 547 486 182 250 754

Regional Operational Programme of Voivodship:

zachodniopomorskie 835 437 299 117 117 286 119 859 810 122 584 275 120 985 128 118 725 961 116 538 851 119 625 988
OP Development of Eastern Poland ERDF 2 273 793 750 318 755 883 326 220 157 333 635 281 329 282 913 323 134 181 317 181 567 325 583 768
OP Infrastructure and Environment, in which: ERDF, CF 27 913 683 774 2 803 245 039 3 213 450 841 3 638 277 158 3 934 283 414 4 347 732 503 4 757 925 675 5 218 769 144
   ERDF 5 737 330 000 804 297 968 823 132 129 841 842 277 830 860 202 815 345 469 800 325 587 821 526 368
   CF 22 176 353 774 1 998 947 071 2 390 318 712 2 796 434 881 3 103 423 212 3 532 387 034 3 957 600 088 4 397 242 776
OP Innovative Economy ERDF 8 254 885 280 1 157 226 001 1 184 324 642 1 211 244 851 1 195 443 813 1 173 121 175 1 151 510 530 1 182 014 268
OP Technical Assistance ERDF 516 700 000 72 434 523 74 130 714 75 815 737 74 826 699 73 429 453 72 076 773 73 986 101
OP Human Capital ESF 9 707 176 000 1 360 817 999 1 392 684 131 1 424 340 441 1 405 759 510 1 379 509 630 1 354 096 998 1 389 967 291
Performance reserve ERDF, ESF 1 331 304 099         266 260 819 532 521 640 532 521 640
Convergence Objective Total 66 553 157 091 8 033 358 119 8 566 036 934 9 112 529 836 9 337 122 889 9 915 945 056 10 494 729 175 11 093 435 082
 ERDF,EFS 44 376 803 317 6 034 411 048 6 175 718 222 6 316 094 955 6 233 699 677 6 383 558 022 6 537 129 087 6 696 192 306
ERDF 33 338 323 218 4 673 593 049 4 783 034 091 4 891 754 514 4 827 940 167 4 737 787 573 4 650 510 449 4 773 703 375
ESF 9 707 176 000 1 360 817 999 1 392 684 131 1 424 340 441 1 405 759 510 1 379 509 630 1 354 096 998 1 389 967 291
CF 22 176 353 774 1 998 947 071 2 390 318 712 2 796 434 881 3 103 423 212 3 532 387 034 3 957 600 088 4 397 242 776
Performance
reserve
(ERDF, ESF) 1 331 304 099         266 260 819 532 521 640 532 521 640

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 ATTACHMENT III

Activities aimed to improve the performance of the Polish administration

in accordance with article 4 of the decision accepting some elements
of the national strategic reference framework for Poland

The activities aimed to improve the performance of the Polish administration will focus on an
enhancement of the institutional skills of the administration and the public sector. These activities comply
with selected reform programmes of the public administration and services in Poland and
are coherent with the strategic decisions made within the national strategic reference framework. The
activities are to be undertaken within the scope of Operational Programme: Human Capital and the
priority axis of Good Governance.
The indicative budget of the European Social Fund to be spent on the improvement of administration
performance amounts to EUR 519.2 million.
The main activities aimed to improve the institutional capabilities within this priority axis are as
follows:
– improving the quality of legal acts and a reform of the legal regulation system,
– improving the performance of the Public Finances system through implementing new manage−
ment principles of Public Finances,
– improving the performance of public administration in order to reduce bureaucracy that impairs
a development of enterprises and to facilitate investments,
– introducing management facilities in the sector of justice in order to make the access to the courts
easier,
– developing a partnership attitude involving social partners and non−governmental organisations
in the process of preparing and accomplishing public policies.

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Contents

Introduction .............................................................................................................................................. 15

1. Diagnosis of Social and Economic Situation ................................................................................. 17

2. SWOT Analysis – Situation at start of NSRF implementation ..................................................... 20

3. Directions and Effects of the Cohesion Policy in Poland in 2004−2006 ..................................... 25

4. Ex ante Evaluation including Forecast for Impact on Environment and Evaluation

of Macroeconomic Consequences .................................................................................................. 28
4.1. Results of ex ante Evaluation ....................................................................................................... 28
4.2. Results of Evaluation of Environmental Effect ............................................................................. 33
4.3. Evaluation of Anticipated Macroeconomic Consequences of NSRF Implementation ................. 35

5. National Social and Economic Growth Strategy............................................................................ 43

5.1. Challenges .................................................................................................................................... 43
5.2. Development Vision ...................................................................................................................... 47
5.3. Basic Rules ................................................................................................................................... 49
5.4. Objectives of Cohesion Policy in Poland, in Support of Economic Growth and Jobs ................. 50
5.4.1 Improving the functioning standard of public institutions and development of partnership
mechanisms ......................................................................................................................... 54
5.4.2 Improving the human capital quality and enhancing social cohesion ................................ 57
5.4.3 Establishment and modernisation of technical and social infrastructure crucial for better
competitiveness of Poland ................................................................................................... 63
5.4.4 Improving the competitiveness and innovativeness of enterprises, including in particular
the manufacturing sector with high added value and development of the services
sector ................................................................................................................................... 69
5.4.5 Increase of the competitiveness of Polish regions and preventing their social, economic
and territorial marginalisation .............................................................................................. 75
5.4.6 Balancing growth opportunities and supporting structural changes on rural areas ........... 79
5.5. Interrelationships of Implementation of the Strategic Objective and Horizontal Objectives ........ 80
5.6. Indicators ....................................................................................................................................... 81

6. Measures in support of enhancing administrative capabilities within NSRF for the years
2007−2013 ............................................................................................................................................. 85

7. Coordination of the Cohesion Policy with Measures Executed within the Lisbon Strategy
and NDP ............................................................................................................................................... 89
7.1. Key Spheres of the Lisbon Strategy Executed in Poland ............................................................ 89
7.2. Coordination of Implementation Instruments of the Lisbon Strategy ........................................... 90

8. Coordination of Measures Executed Within Cohesion Policy with Measures Executed

within the Common Agricultural Policy and the Common Fishery Policy ................................ 95

9. Instruments for Execution of NSRF Objectives ............................................................................. 98

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 10. Implementation System ................................................................................................................... 106
10.1. Coordination System ................................................................................................................. 106
10.1.1. NSRF as element of execution of the development policy in support of growth
and jobs ........................................................................................................................ 106
10.1.2. Coordination in relation to NSRF ................................................................................. 106
10.1.3. Coordination of operational programmes implementation on the regional level ........ 108
10.1.4. Assuring cohesion between operational programmes executed in NSRF
and operational programmes co−financed by EAFRD, CFP and measures
implemented by EIB and financial instruments ........................................................... 108
10.2. Implementation System for the “Convergence” Objective ........................................................ 109
10.2.1. Management and Control ............................................................................................ 109
10.2.2. Monitoring Committee at the OP level ......................................................................... 111
10.2.3. National Evaluation Unit ............................................................................................... 112
10.2.4. Control .......................................................................................................................... 112
10.2.5. Informatic system ......................................................................................................... 113
10.3. Implementation System for the “European Territorial Cooperation” Objective ........................ 113
10.3.1. Coordination ................................................................................................................. 113
10.3.2. Managing and Control .................................................................................................. 114
10.3.3. Certification of expenditures borne by Polish beneficiaries of the transborder,
transnational and interregional cooperation programmes ........................................... 115
10.3.4. Implementation system of ETC programmes with participation of Poland, managed
by institutions situated outside Poland ........................................................................ 115

11. Financial Framework ........................................................................................................................ 116

11.1. Basic Principles of Financial Planning ...................................................................................... 116
11.2. Estimated Financial Plan ........................................................................................................... 116
11.3. Rules for Division of Resources between Operational Programmes ....................................... 118
11.4. National Performance Reserve ................................................................................................. 119
11.5. National Intervention Reserve ................................................................................................... 119
11.6. Verification of ex ante additionality rule .................................................................................... 120
11.7. EAFRD and CFP ....................................................................................................................... 120
11.8. European Investment Bank ....................................................................................................... 120
11.9. Anticipated Expenditure Level for Implementation of the Lisbon Strategy Provisions
in NSRF ..................................................................................................................................... 120

Appendices: ............................................................................................................................................. 125

Appendix 1. Detailed Social and Economic Diagnosis of Poland ...................................................... 125
Appendix 2. Social consultations related to NSRF ............................................................................ 150
Appendix 3. Table of expenditures within particular earmarking categories ..................................... 153
Appendix 4. Community Initiatives ..................................................................................................... 160

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INTRODUCTION

When Poland joined the European Union (EU) in May 2004 it joined the execution of one of the top
priority Community policies – the cohesion policy, aimed at promoting harmonious growth of the entire
EU−25 territory through measures aimed at reducing disparities in the development level of its standards
in its particular regions, and consequently to enhance economic, social and territorial cohesion of the
Community. If appropriate directions for measures executed within the cohesion policy with financial
support of structural funds and the Cohesion Fund are assured, Poland has an opportunity at making up
for development lagging and considerable hastening of processes which are to help achieve conver−
gence with other regions and member states of the Community.

Pursuant to EU guidelines that define the main objectives of the cohesion policy and taking into
account the social and economic prerequisites of Poland, the National Strategic Reference Framework
for the years 2007−2013 (NSRF) in support of growth and jobs was prepared. The document defined
support directions from funding available from the EU budget in the forthcoming 7 years within the
European Regional Development Fund (ERDF), European Social Fund (ESF) and the Cohesion Fund.
NSRF is a reference instrument for development of operational programmes, simultaneously taking into
consideration provisions of the National Development Strategy for the years 2007–20151 (NDS) and the
National Reform Programme for the years 2005–2008 (NRP)2, in response to challenges contained in
the Lisbon Strategy.

The draft NSRF has been developed pursuant to requirements of article 27 of the Council Regula−
tion (CE) No. 1083/2006 of 11 July 2006 which set up general provisions concerning the European
Regional Development Fund, the European Social Fund and the Cohesion Fund and repealing the
Regulation (CE) No. 1260/19993 (hereinafter called: Council Regulation No. 1083/2006). The document
presents an analysis of the social and economic situation of Poland and its regions, formulates the top
challenges for Poland in the perspective of the forthcoming years and defines objectives aimed at
achieving social, economic and territorial cohesion with Community countries and regions, presents
allocation of funds for particular programmes and an abbreviated description of the execution
system. Furthermore it presented a description of operational programmes, which are to execute
objectives assumed by NSRF.

1
The National Development Strategy, adopted by the Council of Ministers on 27 June 2006 is the basic document that defines objective of the
growth policy in Poland for the years 2007−2015.
2
The National Reform Programme, adopted by the Council of Ministers on 28 December 2005, sets up short−term objectives and implementation
means of the growth and jobs policy, formulated within the renewed Lisbon Strategy.
3
EU Official Journal L 210 of 31 July 2006.

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 VACAT

16
1. DIAGNOSIS OF SOCIAL AND ECONOMIC SITUATION

As a country included by the “Convergence” objective of the EU cohesion policy Poland is characterised by:
– gross domestic product (GDP) per capita measured by currency purchasing power4 in all voivod−
ships (Nomenclature of Territorial Units for Statistics, i.e. NUTS II5 ) lower than 75% of the average
value for EU−25, 5 of 16 Polish voivodships (on the eastern areas, i.e. voivodships: lubelskie, podkar−
packie, podlaskie, świętokrzyskie and warmińsko−mazurskie) are the poorest regions in the entire
EU−25 area (they have the lowest GDP per capita in the entire EU−256 ),
– lasting rate of economic growth, stabilised at a relatively high level as compared to the average rate
of economic growth in the EU (in 2006 it totalled to 5.8% as compared to 2.9% in EU−25), very low
inflation (in 2006 on average 1.3% as compared to 2.2% in EU−25), with concurrent deficit of the
public finance sector, which exceeds the convergence criterion from the Maastricht Treaty,

Map 1. GDP per capita in 2003 in PPS as compared to the average in EU−25

GDP EU25 = 100

Source: Eurostat

– ongoing convergence processes, which have recently been proceeding at a lower pace than in other
EU member states (in the years 1997−2005 decreasing of the development gap of Poland took place
as compared to EU−25 countries only by 6 percentage points, measured in GDP by PPS), while for
example in Estonia by 22 points, by 15 points in Lithuania and Latvia, and 13 points in Hungary)
– average internal spatial differentiation in the EU scale as measured at the level of particular voivod−
ships (the NUTS II level). Differentiation in the GDP per capita level between the poorest and the
wealthiest voivodship was as 1 to 2.2 in 2004,

4
Currency purchasing power/purchasing power parity (PPP) – based on the theory of one price, which assumes that for a determined number of units
of a given currency the same number of goods may be purchased in each country at the same time. The purchasing power parity allows making
international GDP comparisons and comprises converting the exchange rate according to the purchasing power.
5
The Nomenclature of Territorial Units for Statistics (NUTS/NTS) – single scheme of territorial division in European Union member states. In Poland
applied pursuant to Ordinance of the Council of Ministers of 13 July 2000 concerning introduction of The Nomenclature of Territorial Units for
Statistics (NTS) (Dz. U. No.58, item 685 as later amended). NTS/NUTS is a five level hierarchical classification system, which comprises three
regional levels (NUTS I − III) and two local levels (NUTS IV − V); for practical reasons the NUTS nomenclature has been first of all based on the
already existent administrative division.
6
In 2004 the average GDP level per capita in Poland totalled to 48.7% of the average level in EU−25, while following including of Bulgaria and
Romania – 50.7%. Simultaneously as a consequence of the accession of those countries to the EU, the majority of those regions is now poorer than
regions in Eastern Poland.

17
 – public administration with a negative image, characterised by insufficient institutional efficiency
resulting from outdated organisational structures and management systems, low standard of cooper−
ation culture and incompletely implemented partnership standards, which provide low quality public
services and which to a large extent is susceptible to corruption threat,
– high percentage of young people in the demographic structure (at the end of 2005 persons in the age
group below 35 years constituted 52% of the population),
– despite a gradual increase in the number of new work posts and employment growth, and a system−
atic unemployment reduction, the employment rate continues to be the lowest of all EU countries and
the unemployment rate is simultaneously the highest of all EU countries. In 2005 the employment
rate in Poland totalled to 52.8%, while the EU−25 average was at the level of 63.8%; the unemploy−
ment rate in Poland7 amounted to 17.7%, while on average in EU−25 countries – 8.8%. In 2006 a fall
was recorded in the unemployment rate in Poland to 14%, and in EU−25 to 7.9%,
– despite advantageous changes connected with ongoing restructuring processes (elimination of
a large number of work places in “traditional sectors”) and shifting labour resources to more effective
sectors of the economy, a still outdated and ineffective sector related employment structure, with
a clearly excessive employment in agriculture (the highest one in Europe), which is insufficient in the
relatively weakly developed services sector,
– increased revenues and expenditures of the society, accompanied by intensified disparities in the
financial situation of the inhabitants and increased threat of poverty and social exclusion,
– continuously improving education level of the inhabitants, connected first of all with growing educa−
tional aspirations (in the last decade an almost 4−fold increase of the scholarisation indicator in con−
trast to the beginning of the nineties for higher education). The human capital quality in Poland is
nevertheless relatively low as compared to other EU−15 member states − Poland has a considerable
percentage of inhabitants with the lowest education level, as well as a relatively low percentage
of persons with the highest qualifications,
– poor technical infrastructure state, especially transport infrastructure and social infrastructure, which
leads to lagging as compared to other EU countries and poses a serious development barrier, which
also affects adversely the volume of foreign exchange and limits the mobility of inhabitants,
– development potential of Poland not being fully used owing to the absence of required standards
of transport links in international and internal relations (in particular between the major economic
centres),
– low productivity and considerable technological and organisational gap of enterprises in relation to
EU enterprises (despite relatively high dynamics of work productivity), first of all resulting from rela−
tively low investment rate, insufficient saturation with modern technologies, including informatic and
communication technologies, unsatisfactory cooperation between R&D and the economy, and well
as mismatched qualifications structure and a high ownership share of the state (especially in major
enterprises), and as a consequence a low share of highly processed goods in growing export,
– low level of expenditures for R&D, which in 2004 amounted in Poland only to 0.57% of GDP while
the average for EU member states was at that time at the level of 1.85 % of GDP,
– considerable progress in natural environment protection: through restructuring and modernisation
of the economy (which allows limiting energy and material intensity of production) and consistent−
ly implemented provisions of the ecological policy, including changes in the financing system
of proecological activity and adaptation of protective norms to EU standards. Despite those pos−
itive trends parameters of the environment condition continue to differ from average values
in EU countries,

7
Harmonised.

18
– rural settlement system which is the most dispersed one in the EU (a very high number of villages
and neighbourhoods) with simultaneous polycentric arrangement of the urban settlement system,
– lack of territorial flows on the inland labour market (scale of migration between voivodships is small
and ranges between 10 and 11%), and at the same time continuously growing foreign migrations
(especially since Poland’s accession to the EU). Opened labour markets in some EU member states,
a considerable wage disparity between Poland and EU−15, led to increased number of Poles job
migrating abroad,
– and finally differentiation of the living level and standard between urban and rural areas (to the
disfavour of the latter ones). Rural areas are characterised by a small number and insufficient organ−
isation of market, financial and production services, hindered access to elementary social services
(education, culture, health), lack of non−agricultural work places, and the insufficiently developed
technical infrastructure is one of developmental barriers on those areas.
The above description presents only those most important phenomena and trends taking place in
Poland, which is a point of relation for determination of the development strategy. A detailed diagnosis
of the social an economic situation of Poland, illustrated by Diagrams, has been contained in Appendix 1.

19
 2. SWOT ANALYSIS – SITUATION AT START OF NSRF
IMPLEMENTATION
Strengths of the Polish Weaknesses of the Opportunities for the Threats for the Polish
economy Polish economy Polish economy economy
Macroeconomic • Stability of the • Low level of the GDP • Progress in opening • Lack of progress
situation economy in the real per capita indicator and liberalisation of EU in further reforms
and monetary spheres and added value per markets of public finance
• Lasting economic employee • Changing the structure • Accruing of public debt
growth on an average • Ineffective sectoral of public expenditures
level enabling gradual structure of the in support of • Maintained low level
convergence with economy – despite development of investments
EU−15 countries changes an undertakings • Quicker development
• Inflation stabilised at excessively high share • Increasing the inflow of new EU member
a low level of employment in of foreign investments states and more
agriculture and and the consequent advantageous
• Relatively high traditional sectors with
currency reserves transfer of modern conditions for
low effectiveness technologies and investments in those
• Growing openness • Low investment level know−how and its use countries
of the economy, in support of economic
measured by the level • Low level of economic • Insufficient
innovativeness modernisation
of trade exchange with diversification of
abroad • High deficit of the state • Prospective supply sources for
budget and level membership in the electric power and gas
• High export dynamics Economic and
of public debt (with
• Change of export Monetary Union • Weakening of global
unequivocal trend
structure towards for limiting the level (adoption of euro and European
industrial processed of those indicators) as common currency) economic situation
products • Establishment of • Deterioration of climate
• Unfavourable and
• Big scale of foreign ineffective structure favourable conditions for economic
investment inflow and of public expenditures for running economic exchange with abroad,
the consequent operation including also eastern
transfer of modern • High energy intensity
of the economy • Utilisation of task neighbouring countries
technologies and budget mechanisms
know−how as compared to EU
countries
• Maintaining a high
level of the budgetary
deficit

Functioning • Relatively high level • Low capacity of public • Radical improvement • Insufficient utilisation
of public of education of public services in of national of existing potential
institutions administration staff development and informatisation level of civil service corps
• Growing role of enforcement of the and interactive nature • Politicisation of the
territorial self− law and providing of public services public sphere
governments public services • Rationalisation • Unstable and
in development • Low operation of administrative ambiguous legal
of growth effectiveness procedures leading regulations
in economic courts to qualitative changes
of relations between • Maintained corruption
• Low functioning risk
standard of public citizens and public
institutions and their administration
low social status • Reform of public
• Insufficient utilisation administration towards
of informative and rationalisation of task
communication execution
technologies in public (the so−called good
administration governance)
• Low social activity and
citizens involvement
• Low social status of
public administration
• Perception of the
corruption
phenomenon in many
areas of public
administration

20
 Strengths of the Polish Weaknesses of the
economy Polish economy
Human capital • Relatively young age • Low level
and social structure of the of professional activity,
resources population professional and
• Increase in the number spatial mobility
of well educated young • High unemployment
people entering the rate, especially among
labour market youth and women and
• Development of higher among persons with
education and growth low qualifications
of academic • Intensifying
scholarisation indicator phenomenon
• Insignificant regional of long−lasting
differentiation unemployment
in participation • Large scope
in primary education, of unregistered
pre−middle school employment (“grey
education and zone”).
secondary education • Low effectiveness
• Strong position of labour market
of a part of elementary institutions in limiting
sciences (pure unemployment
sciences), and • Insufficient correlation
achievements in some of the education
spheres of applied
system with the labour
sciences (e.g. medical market
sciences,
programming • Relatively low outlays
sciences) and insufficient
investments in the
• Presently relatively low
education system,
labour costs as especially on rural
compared to EU−15
areas
• Low level of education
on rural areas
• Low lifelong learning
indicator
• High level of income
level of the society
• Marginalisation and
social exclusion
of some population
groups
• Insufficient correlation
of entrepreneurship
promotion among
citizens with the
education system
• Low level
of expenditures
on culture
Opportunities for the Threats for the Polish
Polish economy economy
• Enhancing flexibility • Negative natural
of labour markets growth, aging of the
• Utilisation of the society,
potential of young • Maintaining a low level
generations entering of employment and
the labour market a high unemployment
• Utilisation of potential rate
of educated people • Low professional
and those returning mobility
from job migrations • Excessive outflow
from abroad (permanent and
• Utilisation of temporary migration)
educational aspirations of staff with best
of the populations, also qualifications, including
of persons who especially young
already have jobs people
• Adaptation • Absence of life long
of education to needs learning habit
of the labour market • Intensification of
• Enhancing access differences in the living
to education, also on standard of the
rural areas population
• Maintaining a high • Inheriting poverty
scholarisation level and social exclusion
of youth on a higher • Deterioration of health
level safety of the citizens
• Development
• Lasting absence
of educational potential of economic and social
in spheres that
ties with well educated
determine enterprising
competitiveness representatives
of the young
generation remaining
on emigration
21
 Strengths of the Polish Weaknesses of the Opportunities for the Threats for the Polish
economy Polish economy Polish economy economy
Competitive− • High dynamics of work • Relatively high fiscal • Further increase • Maintaining insufficient
ness productivity and parafiscal burdens in competitiveness accessibility of
of enterprises, • Considerable of enterprises of Polish products companies to external
R&D, adaptation skills • High share of in the EU, as well as financing sources
information of enterprises non−wage labour costs on global markets • Maintaining low
society (especially small and • Access to external outlays on R&D
and the • Low level of
medium enterprises productivity financing (financial • Concentration of state
services (SMEs) leverage)
sector • Low level and incorrect aid on traditional
to cope with • Maintaining growth sectors of the
competitiveness structure of outlays
on R&D dynamics for labour economy
pressure on external productivity
markets • Weak cooperation • Unstable and
between the sphere of • Development ambiguous legal
• Growing number of of research and environment
doctoral theses and R&D and the economy
international scientific • Increase in labour
number of employed • Low level of creativity, and research
with a doctor degree in including low indicator costs leading
cooperation to weakening the price
the R&D sector of inventions notified
to patent protection • Hastening the competitiveness
• High growth dynamics modernisation of the of Polish products
of the sector informatic • Low level economy through
and communication of innovativeness rationalisation and
services (ICT) in enterprises promotion of transfer
• Dynamic development • Low level of modern techniques
of the capital market of investments and technologies
and system of financial in enterprises • Propagation of access
services • Low level of the use to the Internet
• Change in the export of intellectual property • Utilisation of
structure towards rights in the economy globalisation effects
processed products • Low level of high for development of the
• Large and absorbing technology products services sector
internal market of and highly processes • High growth dynamics
goods and services products in export in the services sector
• High barriers in access on the basis of
to capital designated informatic and
for establishment and communication
development of technologies (ICT)
enterprises
• Insufficient
development of the
economic insurance
system
• Low absorption of the
economy (including
enterprises) by
modern technologies
and lagging behind in
establishment of an
information society
• Insufficient
development of the
service sector,
including especially
of a market nature

22
 Strengths of the Polish Weaknesses of the Opportunities for the Threats for the Polish
economy Polish economy Polish economy economy
Infrastructure • Developed railway • Outdated transport • Modernisation and • Lack of progress in the
system with relatively infrastructure not improvement of the development
homogenous spatial adapted to growing quality of road and of transport system
arrangement needs railway networks, with European and
• Improved level • Insufficient transport increasing transport national functions
of equipping in the links on main transport accessibility of regions • Further limitation in the
water supply and corridors (TEN −T) in Poland favourable scope of public
sewerage systems to allocation of transport services
• Insufficient transport investments in the
• Well developed links of major urban outside metropolitan
sector of enterprises. areas
system of regional centres in Poland by
airports a system of motorways • Development of public • Progressing recession
and high−speed roads transport (including in energy infrastructure
• Availability of centres in particular regions),
offering highly • Lack of integrated • Lagging behind
specialised medical public transport • Utilisation of air in fulfilling
services systems transport to increase requirements
economic of Regulations related
• Abundant resources • Low safety level competitiveness
of cultural heritage of road traffic to environment
• Growing role of Polish protection
• Lack of integrated sea ports in transit
system to provide • Insufficient progress
of cargo in the sphere of
connections of sea
ports with other • Development ecological awareness
transport infrastructure of innovativeness, of the society
including that leading
• Insufficient access to to reducing material
ports on the side of and energy intensity
land and sea of the economy
• Unsatisfactory • Development of culture
diversification of related industries and
energy supply sources enhancing the role
• Low share of of culture in
renewable energy establishment of GDP
sources in the energy and creation of work
balance places
• Considerable • Execution of
differentiation Regulations as regards
in availability of water environment protection
and sewage systems
• Inadequate condition
of infrastructure
connected with wastes
utilisation
• Unsatisfactory state
of the anti−flood
infrastructure
• Low accessibility
of housing
infrastructure and
inferior technical
condition of the
existing housing
• Unsatisfactory state
of the health protection
infrastructure
• Bad condition
of monuments and
considerable
differentiation
in access to culture
infrastructure

23
 Strengths of the Polish Weaknesses of the Opportunities for the Threats for the Polish
economy Polish economy Polish economy economy
Spatial • Balanced polycentric • Considerable number • Increased diffusion • Insufficient
dimension, arrangement of the of municipal, former of growth impulses transformations of the
including municipal settlement industrial and post− from the major cities social and economic
rural areas system with moderate military areas onto surrounding areas structure
concentration degree degraded socially, through enhancing for improvement
of the capital city economically and of links of competitiveness
• Relatively technically, in need • Development of the regions,
homogenous spacing of revitalisation of metropolitan especially on the
of urban • Low urbanisation level, functions in the biggest poorest areas
agglomerations with especially in eastern urban centres, • Uneven and
more than 500 000 regions of Poland including on areas unsatisfactory
inhabitants. • Insufficiently of Eastern Poland development
• Relatively low developed • Connecting Polish of metropolitan
transformation level metropolitan functions metropolises in the functions
of the natural of European rank system of European • Increase of poverty
environment and high in the largest Polish transport corridors and social exclusion
share of protected cities • Reducing disparities on degraded areas
areas in the total area • Insufficient in social and economic and on rural areas
of Poland development development between • Pollution of the natural
• High tourist values of municipal functions urban areas and rural environment
and nature and in small and medium areas
landscape values, centres which serve • Utilisation of spatially
including rural areas diversified natural and
attractiveness of areas • Dispersed settlement cultural values
with cultural heritage network for development of
• Absence of links tourism and recreation
between the main • Advantageous
Polish towns development
• Insufficient conditions for
accessibility ecological agriculture
of transport and • Increase in interest
functional links in rural areas as place
between the major of residence and areas
urban centres and the for spending free time
surrounding small and • Rational use and
medium towns and maintaining abundant
rural areas and diversified natural
• Considerable resources
differentiation
in development
of technical, service
and social
infrastructure between
the largest towns and
some rural areas
• Peripheral nature
of Polish eastern
regions in the EU
scale

24
3. DIRECTIONS AND EFFECTS OF THE COHESION POLICY
IN POLAND IN 2004−2006

In the years 2004−2006 the following sums were designated for the implementation of the Europe−
an cohesion policy in Poland (in current prices):
– 8.3 billion euro for execution of programmes8 co−financed from structural funds,
– 0.35 billion euro within two programmes of Community Initiatives INTERREG and EQUAL9,
– 4.2 billion euro from resources of the Cohesion Fund10,
– 4 billion euro of national public means.
European funds had a positive effect on the elementary macroeconomic categories, such as eco−
nomic growth, or changes in the situation on the labour market. The assumed general objective in the
form of real convergence of the Polish economy to the average level of 42−43% GDP per capita in
EU 15 was achieved, and even exceeded already in the first year covered by execution of the National
Development Plan 2004−2006 (NDP)11 (44.7%). Thanks to used funds, in 2004 the unemployment rate
decreased by 0.01%, and in 2005 it fell almost by 0.5% and at the end of the year totalled to 17.6%.
An analysis of the impact of EU funding on execution of development objectives assumed in the
Community Support Framework for Poland in the years 2004−200612 has shown its positive nature both
in macroeconomic and in microeconomic perspectives. Although the disbursement period of EU funds
has been short to date, already the first positive symptoms were recorded as proof of improvement
taking place in the social and economic situation in Poland. Direct support for enterprises, including
investments made in fixed assets in modernisation and development of enterprises and implementation
of new technologies helped improve their financial results, and consequently also enabled an increase
in competitiveness on the single EU market. Implementation of projects in support of human resources
development and of improving qualifications of employees was transposed to the increase in their value

8
Operational Programmes − Sectoral Operational Programme Increase of Competitiveness of Enterprises, 2004−2006 (Ordinance of the Minister of
Economy and Labour of 1 July 2004 concerning adopting the Sectoral Operational Programme Increase of Competitiveness of Enterprises, 2004−
2006 (Dz. U. No. 166, item 1744 as later amended), Sectoral Operational Programme Development of Human Resources 2004−2006 (Ordinance
of the Minister of Economy and Labour dated 1 July 2004 concerning adoption of Sectoral Operational Programme Development of Human
Resources 2004−2006 (Dz. U. No. 166, item 1743 as later amended), Sectoral Operational Programme Restructuring and modernisation of food
product sector and development of rural areas 2004−2006 (Ordinance of the Minister of Agriculture and Rural Development dated 3 September
concerning adoption of Sectoral Operational Programme Restructuring and modernisation of food product sector and development of rural areas
2004−2006 (Dz. U. No.197, item 2032 as later amended), Sectoral Operational Programme Fishery and fish processing 2004−2006 (Ordinance of
the Minister of Agriculture and Rural Development dated 11 August concerning Sectoral Operational Programme Fishery and fish processing
2004−2006 (Dz. U. No.197, item 2027 as later amended), Sectoral Operational Programme Transport for the years 2004−2006 (Ordinance of the
Minister of Infrastructure dated 28 July 2004 concerning adoption of Sectoral Operational Programme Transport for the years 2004−2006 (Dz. U.
No.177, item 1828 as later amended), Integrated Regional Operational Programme 2004−2006 (Ordinance of the Minister of Economy and Labour
dated 1 July 2004 concerning adoption of Integrated Regional Operational Programme 2004−2006 (Dz. U. No.166, item 1745 as later amended),
Operational Programme Technical Assistance 2004−2006 (Ordinance of the Minister of Economy and Labour dated 1 July 2004 concerning
adoption of Operational programme Technical Assistance 2004−2006 (Dz. U. No 166, item 1742 as later amended) financed from resources of four
structural funds: ERDF, ESF, European Agriculture Guidance and Guarantee Funds and financial Instrument of Fishery Guidance.
9
INTERREG – EU Initiative, in support of transborder, transnational and interregional cooperation, EQUAL – EU Initiative in support of projects
aimed at transnational cooperation to promote new methods of counteracting all forms of discrimination and inequalities on the labour market
10
Cohesion Fund – an economic and political instrument of the European Commission, which is not a part of structural funds, and which is implement−
ed at the level of selected countries and not regions. Its objective is to facilitate integration of less developed countries by establishing major
transport networks as well as environment infrastructure facilities of a large impact scale.
11
NDP – programme document which in the preceding programming period was a basis for planning particular spheres of structural interventions, as
well as integrated long−term operational programmes of a horizontal and regional nature. NDP contained an indication of objectives, measures and
magnitude of intervention of structural funds and the Cohesion Fund, directed at reducing disproportions in the level of social and economic
development between the member state and the European Union. On the basis of that document a member state conducted agreements with the
European Commission related to the Community Support Framework (Ordinance of the Council of Ministers dated 22 June 2004 concerning
adoption of the National Development plan 2004−2006 (Dz. U. No. 149, item 1567 as later amended)
12
Community Support Framework (CSF) – in the preceding periods of budgetary planning a EU document adopted by the European Commission in
agreement with a given member state and following performed evaluation of the development plan submitted by the given member state. CSF set
out the strategy and priorities for activities of structural funds and member state, their specific objectives, volume of contribution of the funds and
other financial resources.

25
 and opportunities on the national and international labour market. The inflow of highly qualified staff to
the economy also enabled an increase in competitiveness and change in its structure. Professional and
social integration of persons with disabilities and other excluded milieus to a large extent weakened the
pressure on the state to bear ineffective social expenditures, which burden the national budget each
year. Thanks to the executed infrastructural investments a considerable improvement has taken place
in the living conditions and activity (attractiveness) for business entities in Poland. Poland’s investment
attraction keeps growing, which may be proven by the high level of foreign investments, allocated on
areas appropriately provided with technical infrastructure. An improvement took place as regards trans−
port accessibility of major metropolises, which are poles of economic growth in Poland, as well as on
areas which up to now had insufficient transport links. The development and improvement of the stand−
ard of transport links determines the efficient flow of goods and persons and affects positively the inter−
nal economic, social and territorial cohesion of Poland. Projects in support of modernisation and devel−
opment of environment protection have not only affected the execution of international commitments by
Poland, but also an improvement of the state of the nature, which improves the standard and comfort of
living for the inhabitants, and elimination of high social and environmental costs of natural calamities.
Resources allocated for structural transformations in agriculture and fishery and for the
development of rural areas have helped improve the competitiveness of those sectors and sustainable
development of areas on the basis of other non−sectoral growth factors. The development of entrepre−
neurship and other non−agricultural operation on rural areas enabled their inhabitants to undertake work
outside agriculture, and through that allowed reduction of concealed unemployment on rural areas.
To a large extent resources coming from EU had been allocated for infrastructural projects in
transport and environment protection, which results directly from immense investment needs in this
respect. Through implementation of programmes co−financed from structural funds built or modernised
were 1 631 km voivodship, poviat and gmina roads, 1 286 km of water supply pipelines and 1 240 km
of sewerage systems.13 On the other hand, as regards national roads, modernisation included only
12.8 km14, as compared to the planned 350 km. Furthermore, in 2005 the European Commission issued
decisions for three projects, the so−called ‘major’ projects, connected with construction of the Kwiatkowsk−
iego Route in Gdynia, construction of Puławy by−pass with a new bridge on the Vistula River and with
modernisation of a fragment of the railway line Warszawa−Łódź. The main reason for a low level of
utilisation of EU resources EU is the specific nature of projects executed within the programme, charac−
terised by a long investment cycle, and also a complex legal system and institutional barriers.
To a slightly lesser extent structural funds support measures related to human resources (within
particular measures of ESF support included over 1 144 000 persons15), information society (within
Sectoral Operational Programme Development of Human Resources 2004−2006 purchased were
almost 122,000 computer units16) and the research and development sector, which appears to be
a natural consequence of considerable underinvestment of the most elementary spheres of social and
economic life in Poland.
The biggest and the most effective group of beneficiaries applying for co−financing of project exe−
cution from resources of structural funds are territorial self−government entities, which justifies the
correctness of the concept adopted for the new programming period 2007−2013 of decentralisation in
regional policy. The majority of expenditures within projects implemented by territorial self−government
units are investments in elementary infrastructure, which amount to ca. 92% of total project value. Over
60% of project value in this category are pro−environment investments, co−financed from the Cohesion
Fund and implemented by gmina authorities. The second category of investments as regards volume

13
According to the state at the end of June 2006. Source: Managing Authority CSF
14
According to the state at the end of June 2006. Source: ditto
15
According to the state at the end of December 2005. Source: ditto
16
According to the state at the end of December 2005. Source: ditto

26
are projects in the scope of development of human resources, which constitute to 6% investments
in poviats and gminas. Only ca. 2% of all investments support the production sector.
The second biggest group of beneficiaries is government administration and entities that execute
commissioned tasks of government administration, as well as state run budgetary entities. The third
place as regards the share in total resources covered by agreements is occupied by entrepreneurs, who
designate the granted resources for implementation of investment and modernisation projects, and the
biggest support is obtained by entrepreneurs from regions with the biggest number of registered busi−
ness entities. In enterprises it may be expected that as needs connected with material infrastructure
become satisfied, the inclination to creating a competitive domination would grow and demand for projects
in the scope of broadly understood counselling, development of the service sector, purchase of new
technologies, or research and development operation.
The initial period of implementation of EU funds is characterised by a low level of spending EU
resources granted to Poland for the years 2004−2006. This results first of all from the fact that the
developed implementation system failed to identify in a satisfactory way needs of processes connected
with project implementation, which as a consequence led to their being protracted and costly. The
elementary errors concerned inter alia excessive centralisation of the system, its disproportionate cau−
tion and formalisation, too rigorous procedures which at times assume requirements that are far more
restrictive than those imposed by the EU law and underestimation of staffing needs in institutions. The
first months have also disclosed shortcomings in experience and knowledge of beneficiaries as regards
implementation and settlement procedures of their projects, which required additional mobilisation
of institutions to deliver training courses and correcting mistakes made by the project authors.
Procedural and system solutions verified in practice were subject to subsequent corrections, which
were to eliminate burdens and barriers that hinder using EU funds by Poland. To a large extent the
introduced changes comprised working out details concerning regulations or criteria for using the aid,
simplification of documents, on the basis of which granting and settlement of aid took place, correcting
mistakes and lack of consistence in the documents, reallocation of resources to allow better adaptation
to the supply of projects and adaptation of the institutional structure to decentralisation of functions and
elimination of overlapping functions. The first analyses and directional decisions indicating the need
of changes of the main legal acts that regulate inter alia the system of financing, control, public procure−
ment, formal and legal framework for implementation of EU funds have been undertaken in the second
quarter of 2005, yet actual complex approach was worked out as a remedy plan17, which is a basis for
further measures, including amendment to Act dated 20 April 2004 on the National Development Plan
(Dz. U. No. 116, item 1206 as later amended) and Act of 29 January 2004 The Public Procurement Law
(Dz. U. from 2006 No. 164, item 1163 as later amended).

17
Document adopted by the Council of Minister on 6 December 2005.

27
 4. EX ANTE EVALUATION INCLUDING FORECAST FOR IMPACT
ON ENVIRONMENT AND EVALUATION OF MACROECONOMIC
CONSEQUENCES

4.1. Results of ex ante Evaluation

Justification and implementation method of ex ante evaluation

The requirement of preparing an ex ante evaluation for each operational programme within the
“Convergence” objective is imposed on Poland by art. 48 par. 2 of Council Regulation No. 1083/2006.
Development of an ex ante evaluation of NSRF was entrusted to an autonomous contractor (For−
eign Trade Research Institute in Warsaw), selected through an unlimited tender. The evaluation proc−
ess included a team of autonomous experts, who have supervised the entire undertaking. On each
stage of implementation of the evaluation process representatives of government and self−government
administration participated actively in the works.
In the ex ante evaluation use was made of a broad variety of research methods, applied generally
by social sciences, including analysis of document contents, econometric instruments and techniques,
method of the logical matrix and individual interview based on questionnaire, performed among partici−
pants of the NSRF study and persons involved in development of regional operational programmes.
This part presents recommendations from the performed ex ante evaluation of NSRF and the
method of their including in the present document version, while the detailed Ex−ante evaluation of
NSRF 2007−2013 was provided on the web page of the Ministry of Regional Development.18

Methods of considering results of the ex ante evaluation of NSRF

The evaluation has shown that NSRF 2007–2013 submitted for ex ante evaluation fulfils the major−
ity of formal and merit−based requirements. Nevertheless, the evaluators have drawn attention to there
being certain shortcomings in the document.

Justification and internal cohesion

As regards economic justification, results of the evaluation performed on the basis of an analysis
of the social and economic development strategy adopted in NSRF have confirmed the justification
of public intervention in NSRF.
Examination of internal coherence has shown that the structure of NSRF is logical. Challenges set
out in NSRF were considered to be justified. A positive opinion was granted to the selection of horizontal
objectives, which resulted to a large extent from the diagnosis and the SWOT analysis. The set of indica−
tors applied in NSRF was considered to be systematised and coherent with national strategic documents
and – in their relevant scopes – with operational programmes, as well as with foreign sources.
There were reservations as regards moving the detailed diagnosis to the Appendix and to leaving
short conclusions of a very general character in chapter 1. Excessively differentiated proportions
of particular parts of NSRF were pointed out as well as overly developed part concerning the implemen−
tation system.
In its present form of NSRF takes into consideration the notified recommendations. No effort has
been spared to assure that all its sections maintain balance in the scope of presented contents. For this
reason in chapter 1 only an abbreviated form of the diagnosis was maintained.

18
Full version of the document: Ocena szacunkowa Narodowych Strategicznych Ram Odniesienia 2007−2013. Raport końcowy., Instytut Koniunktur
i Cen Handlu Zagranicznego, Warsaw, September 2006, is available on the Web page: http://www.funduszestrukturalne.gov.pl/NSS/ewaluacja/

28
 Duplication of information from the diagnostic part in presentation of horizontal objectives was
indicated at the cost of there being no precise description of instruments – operational programmes.
A proposition was made to present in this section general information concerning operational programmes
and to indicate the way in which they would affect the implementation of the main objective.
Despite recommendations given by experts, information contained in the description of objectives
resulting from the diagnostic section have not been removed, as they provide justification for selection
of objectives, and repeat issues from the diagnostic part only to an indispensable extent. The document
was supplemented by additional section 8 – Performance instruments of NSRF objectives, which justi−
fies the selection of operational programmes and contains a diagram which presents their impact
on performance of horizontal objectives.

External cohesion
Report from the ex ante evaluation has indicated a directional convergence of objectives and priorities
of NSRF and methods of their delivery with solutions adopted in EU programmes and legal regulations.
It was found that measures proposed by NSRF conform to Community guidelines that determine the imple−
mentation of each of the Lisbon objectives. Experts drew attention to the fact of considerable care assured by
NSRF authors to make sure that none of EU recommendations and policy directions are omitted.
To maintain full external cohesion of NSRF, the experts have proposed supplementing issues
related to equal opportunities for males and females on the labour market and the migration policy by
separate measures.
Pursuant to suggestion of the research team the new version of NSRF included the subject
of equal opportunities for women and men. This equality of opportunities was emphasised as one of the main
principles that determine the execution of the strategic objective. More emphasis was placed
on implementation of this principle in description of Objective 2 – Improvement of the human capital and en−
hancing social cohesion. In the NSRF implementation system this principle was introduced by assuring equal
opportunities in selection of members to committees and subcommittees that monitor implementation of funds.
Specific recommendations presented in the report have been presented in relation to particular
sections (chapters) of NSRF:

Social and economic diagnosis, including SWOT analysis

Attention was drawn to insufficient cohesion of the diagnosis contained in the chapter with its
discussion presented in the Appendix, and lack of information in the diagnosis that documented provi−
sions of the SWOT.
Based on the notified reservation care was taken to assure coherence of the contents in both parts
of the diagnosis and its linking with the SWOT analysis. The outline of the diagnosis is a synthetic
reflection of the social and economic situation presented in Appendix 1.
A recommendation was made to verify a part of conclusions drawn in the diagnosis and having
macroeconomic indicators, used for diagnosing and forecasting the social and economic situation
of Poland, systematised on the basis of methodology used by the European Commission and Eurostat.
Contents of the diagnosis were verified and supplemented by information documenting all state−
ments of the SWOT analysis. An endeavour was undertaken to assure that the presented macroeco−
nomic indicators were adapted to the same of economic categories, both in the diagnostic part, as well
as in development of a new set of indicators in NSRF.
The necessity was pointed out of supplementing both, the diagnosis and the SWOT analysis,
as well as the forecast, by evaluation of the impact exerted by the instrument of the European Grouping of
Territorial Cooperation (EGTC), including estimates of legal, financial, economic, social and ecological risks.
The diagnosis of NSRF was constructed with the presumption of presenting a complex situation
of the entire Poland, including also the regions which would be obtaining additional profits within Objective

29
 3 of the cohesion policy, ‘European Territorial Cooperation”. For this reason the postulated recommen−
dation concerning separation of regions covered by that support in the diagnosis was not taken into
consideration.

Directions and effects of structural policy

Recommendations of experts concerned having the document supplemented by an evaluation
of the hitherto undertaken measures and their effectiveness in the years 2004−2006 and the adopted
allocation of Community resources.
On the basis of a qualitative analysis of utilisation of the structural funds and the Cohesion Fund by
beneficiaries, information concerning effects of measures taken up in the years 2004−2006 using
support of means of structural policy were included in the document.

National social and economic development strategy

1) Challenges and development vision
The necessity was pointed out of supplementing the chapter by adverse phenomena that characterise
Polish rural areas.
This chapter was modified in such a way that it should form a basis for determination of the most
important objectives of the cohesion policy in the years 2007−2013, including also problems of rural areas.
The necessity was indicated of emphasising in the entire document the concept of improving the
living standard and development of social infrastructure.
Improving the living quality along with development of social infrastructure has been clearly
emphasised in the strategic part of NSRF. Issues connected with development of the social infrastructure
were reflected in Objective 3 – Establishment and modernisation of technical and social infrastructure
crucial for increase of Poland’s competitiveness, oriented at measures related to health protection,
education and preservation of cultural heritage.
A suggestion was made to emphasise the development vision of the information society, pursuant
with requirements of the Lisbon Strategy.
Development of information society had been in particular emphasised in the vision as one of the
elementary components in establishment of a society based on knowledge. Owing to a strong emphasis
placed on issues of information society by the evaluators, a decision was taken about considerable
increasing of allocation of resources for measures aimed at development of infrastructure allowing
access to the Internet and support for entrepreneurs in the scope of ICT use.
The recommendations emphasised the lack of evaluation for development dilemmas, even though
they had been included in the NDS.
NSRF fulfils the function of a strategic framework for the cohesion policy implemented in Poland,
and its form is strictly subordinated to requirements of Council Regulation No. 1083/2006. For this
reason NSRF presents a picture which is narrower than NDS, even though it has been based on conclu−
sions of NDS as an elementary planning document.
2) Strategic objective and horizontal objectives
Evaluators of NSRF have indicated the necessity of providing justification for the strategic objective
and its transposition onto horizontal objectives by indicating their correlations.
The recommendation was included by expanding the strategic part of NSRF by subchapter 5.5 –
Linking implementation of the strategic objective with horizontal objectives and a Diagram that presents
those dependencies in the implementation system.
The expert team has proposed reformulation of the strategic objective to enable replacing the
concept of increase in competitiveness by increase in economic potential, which conforms better to the
situation of Poland, and which requires in the first instance elimination of lagging in development.

30
 Taking into consideration the general acceptance of strategy provisions, expressed during social
consultations, provisions concerning NSRF objectives have not been changed significantly. The com−
petitiveness increase articulated in NSRF is broadly understood as influencing changes to the economic
structure and improvement of the social and economic situation, including elimination of developmental
lagging behind and increase of economic potential. It is also a continuation of the objective stipulated by
the NDP, the formula of which is presently perceived in a positive way.
The experts suggested giving up Objective 6 – Balancing growth opportunities and supporting
structural changes on rural areas as measures being outside intervention of NSRF.
Measures co−financed from resources of the cohesion policy on rural areas would be complemen−
tary in relation to measures remaining within the Common Agricultural Policy. Keeping Objective 6 as
a horizontal objective of NSRF indicates directions of intervention within the cohesion policy in this
scope. Determination of this issue within horizontal objectives had been clearly supported during
consultations of NSRF.
Pursuant to recommendations of experts environment aspects in the description of horizontal ob−
jectives should be emphasised.
In the description of the strategic objective provisions were introduced concerning execution by all
objectives of NSRF of the sustainable development principle. The application of this rule was introduced
as one of the tasks by Coordinating Committee of NSRF.

Contribution of NSRF in implementation of the Lisbon Strategy and NDP

To assure maintaining the necessity of maintaining coherence between NSRF and EU documents,
which was frequently emphasised in recommendations of experts, in this chapter an accurate descrip−
tion was provided of the relations between particular objectives of NSRF with objectives of Community
Strategic Guidelines (CSG)19, supplemented by guidelines concerning economic growth and jobs. The
chapter had been revised from the viewpoint of specific determination of tasks implemented within the
Lisbon Strategy and their transposing to objectives of the operational programmes. An indication was
made of the share (percentage) of Lisbon expenditures within operational programmes/regional opera−
tional programmes. A clear−cut description was presented of the complementariness of NSRF with its
implementation instruments and NDP. Simultaneously presented were relations between objectives of
the Lisbon Strategy with NSRF objectives in the form of a diagram.

Financing
The need was pointed to of increasing the performance reserve from 3 to 5% of entire allocation, at
the cost of resources directly divided between regional operational programmes. A suggestion was
made of designating the reserve for financing projects of special supraregional importance, as well as
for regions with the highest effectiveness in managing the allocated resources.
This recommendation has not been taken into consideration. The value of the performance
reserve has been defined in Council Regulation No. 1083/2006 and may not be freely determined by
Poland. However, this recommendation shall be taken into consideration in the scope of defining criteria
for division of reserve in 2011.

Implementation system
In the ex ante evaluation the excessive development of the NSRF implementation system was pointed at.
On the basis of recommendation of experts, the performance system had been revised and adapted
to requirements of Council Regulation No. 1083/2006.

19
Cohesion policy in support of economic growth and jobs: Community Strategic Guidelines, 2007−2013 – strategic Community document adopted by
the EU Council on 6 October 2006 containing guidelines for measures in support of economic, social and territorial cohesion of the EU and defining
indicative framework of intervention of European funds taking into account striving at implementation of priorities of the renewed Lisbon Strategy
and policies of the Community. (EU Official Journal L 291 of 21 October 2006)

31
 In the ex ante evaluation of the NSRF execution system it was considered as indispensable to create
clear principles for a division of competencies between participants of decision making processes and
determination of cooperation principles between them. Emphasis was placed on the need of introducing
changes in legal regulations, which determine effective achievement of strategy objectives, as well as
initiation of discussions with social partners concerning establishment of professional clerical personnel.
The execution system of structural funds and the Cohesion Fund adopted in NSRF will be based
on strengthening the existing and creation of new structures for implementation of operational pro−
grammes. For this purpose separate analyses were performed to determine the desired employment
state and the degree of preparation of structures and employees of public administration to execution of
assumed tasks, both on the central and regional level.
The evaluators have suggested introducing to NSRF solutions which would assure real independ−
ency of certification institutions of the remaining institutions of the performance system available in the
Ministry of Regional Development.
The description of the Certifying Authority contains in its present form provisions about its functional
autonomy from the Managing Authorities.

Impact and expected results

Attention was drawn to the necessity of changing formulations in the part that describes the devel−
opment vision and specification that the effect of undertaken measures would be achieving in the target
year of the percent level of GDP per capita of the poorest “older” EU member states.
In the present form of NSRF the vision takes into account the above recommendations. Changed
stipulations assume achieving economic cohesion with other EU countries by Poland.
A suggestion was made to remove criterion II (related to revenues) from the division algorithm
of reources between regional operational programmes, and to increase to 90% the share of resources
allocated pursuant to criterion I (related to the population), leaving the present criterion III on the
proposed level (allocation of 10% of resources between poviats with the highest unemployment rate).
This proposal results from fears expressed by experts about assuring appropriate natinl contribution
and timely, effective and full utilisation of resources by regions of Eastern Poland, addiitonally sup−
ported by Operational Programme Development of Eastern Poland, aimed at reducing cummulaiton
of resources in those voivodships.
The algorithm of resource division between 16 regional operational programmes had been selected
on the basis of results of performed social consultations of NSRF. It is a continuation of an algorithm
applied in the Integrated Regional Development Operational Programme 2004−2006 within National
Development Plan 2004−2006, whose criteria are simple, mutually consistent and synthetic in nature.
Criterion II treats regions with the lowest level of economic development in a preferential way. Its appli−
cation in the algorithm promotes development locomotives, and is simultaneously favourable to the
development of voivodships with the lowest development level. This also reduces the scale of dispari−
ties in division of resources between voivodships. Operational Programme Development of Eastern
Poland is a separate support instrument for regions of eastern Poland, implemented by specific projects
selected before commencement of delivery of operational programme, which included supplementing
measures to regional operational programmes.

Threats and implementation barriers

Attention was drawn to four groups of problems:
a) problems resulting from external considerations (inter alia limitation of the rate of economic
development; disadvantageous image of Poland abroad),
b) problems resulting from internal considerations (inter alia deficit of manpower which results
from emigration of young Poles and changes of demographic structure after 2010; limited

32
 abilities of SMEs to applying for co−financing from structural resources; budgetary threats
concerning guaranteeing contribution for co−financing of structural funds),
c) problems related to solutions adopted in NSRF (inter alia the multiplicity of organisational struc−
tures; competency related overloading of the Ministry of Regional Development; instability
of the political system and ruling elites; insufficient legitimisation of NSRF in the society; high
level of politicisation of voivodship self−government authorities; legislation barriers),
d) problems disclosed in the period of structural fund implementation in the years 2004−2006 (inter alia
protraction of procedures, which results from overly expanded structure of the performance system;
long refunding time of expenditures in favour of beneficiaries; legal obstacles in execution of in−
vestment projects – public procurement law, law concerning acquisition and expropriation of lands).
Potential barriers and threats indicated by experts would be taken into account during implementa−
tion of NSRF. They shall be included in the framework of evaluation plans for operational programmes
for the years of 2007−2013 (developed pursuant to article 48 of Council Regulation No. 1083/2006).
The presented report from ex ante evaluation contained several specific recommendations related
to structure and contents of NSRF. The majority of recommendations made by the experts, which con−
cerned changes in the document contents have been taken into consideration in the present form
of NSRF. Modifications which had been introduced to the analysed document have mainly helped
correct conclusions presented in the diagnosis and reediting of the analytical part. Enhancing depend−
encies between the diagnostic part and the strategic one contributed to achieving better internal
cohesion of the document. Thanks to such a measure NSRF has decidedly gained a better quality.

4.2. Results of Evaluation of Environmental Effect

Justification, objective and method of implementation

A legal basis for development of the forecast of impact on environment of NSRF 20 are requirements
concerning environment impact assessment as regards consequences of implementation of plans and
programmes contained in articles 40−45 of the Act dated 27 April 2001 Law on environment protection
(Dz. U. from 2006 No. 129, item 902 as later amended).
The development of this forecast had been entrusted to an autonomous contractor (the Environmental
Protection Institute), which was selected through unlimited tender procedure. The subject of evaluation
was NSRF in the version preliminarily approved by the Council of Ministers on 1 August 2006.
The main aim of development of the environment impact assessment of NSRF21 was to identify
categories of impact and consequences for the natural environment, resulting from scope, type and
method of formulation of provisions contained in the document under analysis. Also assessed was the
conformity of provisions in NSRF with present needs and requirements in the field of environment and
sustainable development. Solutions were proposed, which would help eliminate or limit the shortcomings
and weaknesses of the studied document ascertained in this context.

Including results of the environmental effect evaluation

From the viewpoint of potential impact of NSRF implementation on the environment, the document
requires certain corrections and supplementing, both as regards the diagnosis of the present situation
and as regards the proposed objectives and directions of planned measures.

20
Full text of the Forecast is available on the web page: http://www.funduszestrukturalne.gov.pl/NSS/ewaluacja/
21
Strategic Evaluation of Impact on the Environment of NSRF was executed on the basis of an evaluation method for objective performance (the so−
called “objective−led evaluation”), recommended in the manual for execution of strategic evaluations for documents connected with performance of
the cohesion policy: “Handbook on SEA for Cohesion Policy 2007−2013”, February 2006.

33
 The fundamental drawbacks of NSRF, which had been pointed out by authors of the forecast,
concerned the following:
1. Inadequate internal cohesion of the document;
2. Omissions of some important environment related issues in the diagnosis and in the SWOT
analysis;
3. Insufficient taking into consideration of environment related issues in objectives of NSRF,
including:
– omissions of environment related issues in the strategic objective of NSRF and lack of refer−
ence to those issues in the description of specific objectives,
– absence in the set of proposed indicators,
which as a consequence reduces the rank of environment related issues in the aspect of entire contents
of the document.

Insufficient internal coherence of the document

The experts have drawn attention to the insufficient coherence between the description of the
Polish economy, a critical diagnosis and the proposed strategy for measures and methods of verifying to
what extent its implementation would fulfil the adopted provisions.
The document was consequently made more coherent: the packet of NSRF objectives results from
the social and economic situation diagnosis and the SWOT analysis, specific objectives concretise the
formulated strategic objective and are compatible with objectives articulated in operational programmes.

Omissions of some important environment related issues in the diagnosis and in the SWOT
Authors of the forecast have expressed their reservations as regards deficient logical correlation of
elements pointed out in the diagnosis and in the SWOT analysis, as well as the lack of additional envi−
ronment related issues in this scope.
Not all changes proposed by the experts have been included in the final contents of the docu−
ment, however, the diagnosis was systematised and modified by information which documents in
a comprehensive way all statements of the SWOT analysis. In the social and economic diagnosis
of Poland a provision was added which emphasised a considerable progress in the scope of natural
environment protection, which has been ongoing in Poland in the past years through processes
of restructuring and modernisation of the economy (which limits energy and material intensity of pro−
duction) and consequently implemented provisions of the ecological policy and adaptation of protective
standard to EU standards.
Verification was performed for strengths and weaknesses of the Polish economy within the SWOT
analysis; inter alia strengths of the Polish economy included “high tourist and nature and landscape
values, including attractiveness of cultural heritage areas”, and weaknesses: “high energy intensity
of the economy as compared to EU countries”.

Insufficient including of environment related issues in the NSRF objectives

In the opinion of forecast authors, assigning an appropriate rank to issues connected with the natural
environment necessitates having this issue included in the main objective of NSRF by adding the following
articulation: “...with simultaneous preservation of the most valuable elements, conforming to high quality
standards and rational usage of environment resources”.
In the final version of NSRF this recommendation was not taken into consideration. The strategic
objective was formulated in a way that assures response to the most important challenges for Poland,
while its execution would directly affect improvement of the environment quality.
The importance of environmental issues and the exceptional horizontal nature of this issue was
emphasised by the fact that implementation of the main objective and horizontal objectives set out in

34
NSRF would concurrently contribute to fulfilling the principle of sustainable development22, through
social and economic development, which takes into consideration the necessity of maintaining environ−
mental balance.
As regards implementation of the specific objective related to Hastening development of voivod−
ships in Eastern Poland authors of the forecast have emphasised that this development should be
executed taking into account protection of natural environment that is unique on an European scale,
which was taken into consideration by emphasising the application of the principle of sustainable devel−
opment in relation to the ongoing economic activation of the Eastern Poland voivodships.

Indicators
In the opinion of experts the proposed system of indicators rendered impossible monitoring
progress in implementation of NSRF objectives especially as regards issues related to the natural
environment. In the final version of the NSRF document a verification of this set was made and then it
was supplemented by environment related indicators both within the main objective23, and within hor−
izontal objectives24.

Programming reserve
Experts have drawn attention to the necessity of additional support for areas which may have
a particular strong positive impact on the natural environment. This has been taken into account during
division of the programme reserve, by placing emphasis on issues related to environment protection
(especially taking into consideration the necessity of fulfilling accession commitments of Poland in this
scope, flood protection means and retention), railway transport, municipal transport, establishment of an
information society and education.

Final remarks
NSRF is a strategic document and because of its general character also the results and recom−
mendations included in the forecast of impact on environment are of a rather general nature as well.
Ultimate impact of the implementation of NSRF on the natural environment would depend on the progress
of interventions within operational programmes implemented within it. Consequently results of the fore−
cast of impact on environment for NSRF 2007−2013 would in a direct way be reflected on the form and
scope of forecasts for other operational programmes, and consequently also on the final contents
of operational programmes. Results of the forecast will be made available to entities responsible for
developing and approving criteria for project selection (including also those related to the environment).
Recommendations contained in the forecast shall be taken into account in development of guidelines for
priorities in particular operational programmes.

4.3. Evaluation of Anticipated Macroeconomic Consequences of NSRF Implementation

To allow performing an analysis of the potential impact that investments implemented within NSRF
might have, the HERMIN25 model was used to carry out first of all a preliminary simulation. In this
simulation no expenditures within NSRF are taken into consideration and several premises are made

22
For monitoring respecting the principle of sustainable development in implementation of all operational programmes responsibility rests with the
Coordination Committee.
23
Added was the indicator “Final energy intensity of GDP (total, women/EURO), in fixed prices of 2000.”
24
Within the objective Establishment and modernisation of technical and social infrastructure of core importance for better competitiveness of Poland
and its regions two environment related indicators have been added: “Population using sewage treatment plants (% of total number) town/rural
area” and “Share of energy from renewable sources in total consumption of electric power (%)”
25
More information on the HERMIN model is available at: www.funduszestrukturalne.gov.pl bookmarked /evaluation/ and www.warr.pl). The evalua−
tion was performed using the HERMIN model for the Polish economy by the team of the Wrocław Regional Development Agency (WRDA) headed
by prof. Janusz Zaleski, in cooperation with dr John Bradley – author of the baseline HERMIN model and longterm scientific employee of the Irish
The Economic and Social Research Institute – ESRI.

35
 with relation to external and internal conditions that affect the Polish economy (the so−called baseline
scenario). Subsequently a simulation was performed which assumed expenditures at a level specified
by NSRF, and then its results were compared to the baseline scenario, which allowed defining macr−
oeconomic consequences of NSRF implementation.

Basic assumptions of baseline scenario

Adopted were several assumptions related to formation of values for selected macroeconomic
parameters after 2004, which are indispensable to construct the baseline scenario. The growth
dynamics for industrial production for the main economic partners of Poland would amount to 5%
annually. The inflation indicator was adopted at the level of 3% annually. It was assumed that tax
rates would remain on their constant level from 2004. Exchange rates of the Polish zloty as com−
pared to currencies of the main trade partners of Poland have been frozen at their level from 2004.
For needs of converting aid resources of the EU, in NSRF adopted was a permanent rate of
exchange (1 euro = 3.92 PLN). The productivity growth in agriculture would remain unchanged and
would amount to 4.1% annually, and employment in that sector would continue to fall with a dynamics
of almost 2.5% annually. Furthermore, the number of persons employed in the public sector was
frozen at the level from 2004.

Model of payments within NSRF

The scenario with NSRF assumed that in the period of 2007−2010 for needs of converting
commitments (allocations for the given year) into payments (disbursement of resources) use would
be made of the principle n+3 (5% of allocated means would be spent in the first year, 15% in the
second one, 30% in the third and 50% in the fourth). On the other hand, for resources allocated for
the years 2011−2013 the n+2 principle was adopted (10% of allocated means would be spent in the
first year, 30% in the second one and 60% in the third). The analysis of impact took into considera−
tion approximately 95% of EU funds allocated for implementation of NSRF26. In the below table
presented were annual payments adopted in the analysis of anticipated impact of NSRF (in billion
euro) from EU funds.

Table 1. Anticipated payment in NSRF from EU resources in the years 2007−2015 (in billion euro).

Year 2007 2008 2009 2010 2011 2012 2013 2014 2015
Sum 0.33 1.62 3.97 8.04 8.98 10.87 14.21 9.20 6.36

Impact of NSRF on GDP27

Diagram 1 presents the way that implementation of NSRF would affect the dynamics of GDP28. As
may be seen until 2013 the growth rate of GDP is going to be higher as a consequence of implementa−
tion of NSRF. In subsequent years the GDP growth rate would be lower than the GDP growth rate
assumed by the baseline scenario, i.e. without NSRF, yet it ought to be borne in mind that in the option
with NSRF the GDP level would continue to be higher than in the option with no NSRF (Diagram 2).

26
Data received from the Ministry of Regional Development for needs of the analysis did not take into account among others the OP European
Territorial Cooperation or the performance reserve.
27
For needs of calculations of the impact of NSRF on Gross Domestic Product adopted were the anticipated values of GDP in the years 2007−2020
in fixed prices of 1995.
28
Data presented in the diagram for 2006 are a forecast received in a simulation implemented using the HERMIN model, and consequently differ from
the actual GDP increase rate value in 2006 published by CSO. In addition in the HERMIN data base 1995 is the year of reference for calculating
desired values in fixed prices. Consequently GDP increase rates calculated using this model may slightly differ from official CSO publications.

36
Diagram 1. The GDP growth rate in the years 2006−2020 in the scenario with NSRF and in the scenario without
NSRF (baseline scenario)

When making an analysis of results presented in Diagram 1 it ought to be borne in mind that the
model does not refer to the impact of other factors connected with participation of Poland in the Single
European Market, such as for example direct foreign investments. Consequently it may be expected
that as a result of the influence exerted by those other mechanisms the GDP growth rate would actually
not fall to the level of 1.49 in 2016.
Implementation of NSRF would have a significantly positive impact on the level of GDP. Diagram 2
shows that the initial impact of NSRF transfers on GDP (plus 0.2 % over the baseline level in 2007)
is insignificant because only a small part of NSRF would be implemented in the first year. Subsequently
this influence would continue to grow and in 2013 it would cause that GDP in the scenario with NSRF
would be by 11.7% higher than in the very same year in the option without implementation of NSRF. As may
be seen in subsequent years the impact of NSRF on the GDP level would be gradually decreasing, but
even in 2020 (i.e. 5 years following discontinuation of transfers within NSRF 2007−2013) the GDP level
would be higher by over 4% as compared to the scenario without NSRF.

Diagram 2. Impact of NSRF on the level of GDP*

* Difference in the level of GDP between the scenario with NSRF and the baseline scenario (without NSRF) expressed in %
as compared to GDP in the baseline scenario.

37
 Impact of NSRF on the unemployment rate
NSRF would also allow reducing the unemployment rate. Diagram 3 presents the unemployment
rate value in the years 2006−202029 for both scenarios, i.e. with NSRF and without NSRF30 . According to
expectations as a consequence of implementation of NSRF, in 2013 the unemployment rate would be
reduced to ca. 6%. Following completion of NSRF 2007−2013 it would start growing and in 2020 it would
be ca. 10%, however, it would be lower than in the option without implementation of NSRF. As regards
results of the impact to be exerted by NSRF on the labour market it should be noted that in the present
version the HERMIN model does not include job migration to those EU countries which have opened
their labour markets for the Polish citizens. This is due to the absence of reliable data on this subject
despite a clear outflow of manpower from Poland.

Diagram 3. Unemployment rate in the baseline scenario without NSRF and in the option with NSRF

The difference in the value of unemployment rate in the years 2007−2020 between the baseline
scenario (option without NSRF) and the scenario with NSRF was presented in Diagram 4.

Impact of NSRF on the number of employed persons

Diagram 5 presented the impact of NSRF on the number of employed persons. The number
of employed persons would be gradually increasing as compared to the option without NSRF and this
trend would continue until 2013 when the number of employed persons is expected to become higher
by over 900 000 persons. After 2013 the difference in the number of employed persons would be
decreasing between the option with NSRF and the option without NSRF. However, even after discontin−
uation of financing within NSRF, the number of employed persons in subsequent years would continue
to be higher than in the option without NSRF.

29
Data presented in the diagram for 2006 are a forecast received in a simulation implemented using the HERMIN model, and consequently differ from
the actual unemployment rate value in 2006 published by CSO.
30
As for the analysis of the baseline scenario for unemployment rate (Diagram 3) it should be emphasised that the assumed high level for the years
2007−2020 (ca. 11%−12%) results from the fact that along with economic growth also work productivity would keep improving.

38
Diagram 4. Impact of NSRF on the unemployment rate*

* difference between the scenarios has been expressed in percentage points.

Diagram 5. The impact of NSRF on the number of employed persons – in thousand persons

Table 2 presented results for selected macroeconomic variables in two scenarios, i.e. with NSRF and
without NSRF. On the other hand, table 3 contains results of the impact of NSRF on selected variables.

The completed studies have indicated a relatively stronger impact of EU funds on the economic
growth than on the labour market, i.e. the value of employment and unemployment rate. Structural funds
have a particular impact on the increase of production factors output (both by improving qualifications
of manpower, and better access to the technical infrastructure, including also to the transport system).
Increasing the global productivity of the economy, maintaining the same production level causes limited
demand for manpower, however, over a longer period, it improves the international competitiveness
of the economy, attracts foreign capital, leads to production increase and as a consequence affects
in a positive way the number of employed persons.

39
 Table 2. Anticipated value of selected macroeconomic parameters in the scenario without NSRF and with NSRF
in the years 2006−2020
Number of employed
GDP growth (%) Unemployment rate (%) Productivity growth (%)
persons (thousand)
without with without with without with without with
NSRF NSRF NSRF NSRF NSRF NSRF NSRF NSRF

2006 6.57 6.57 12.56 12.56 14509 14509 2.04 2.04

2007 5.38 5.59 11.95 11.82 14609 14631 4.41 4.46
2008 5.40 6.21 11.29 10.67 14720 14822 4.44 4.66
2009 4.03 5.62 11.39 9.89 14702 14951 4.20 4.72
2010 4.07 6.98 11.47 8.45 14690 15191 4.22 5.29
2011 4.06 5.97 11.54 7.86 14678 15290 4.22 5.32
2012 4.11 5.94 11.59 7.13 14670 15410 4.24 5.16
2013 4.17 6.56 11.61 6.04 14667 15590 4.26 5.38
2014 4.22 3.08 11.59 7.15 14670 15407 4.27 4.41
2015 4.28 3.30 11.55 7.88 14677 15286 4.29 4.29
2016 4.34 1.49 11.47 9.61 14690 14998 4.31 3.64
2017 4.39 3.57 11.36 9.88 14708 14954 4.32 4.04
2018 4.45 3.81 11.22 10.02 14732 14930 4.34 4.09
2019 4.50 4.07 11.05 10.03 14760 14930 4.35 4.16
2020 4.55 4.20 10.84 9.96 14794 14940 4.37 4.19

Table 3. Impact of NSRF on selected macroeconomic parameters in the years 2007−2020

Impact of NSRF
on level of GDP on on the number on resources on resources on productivity
(%) unemployment of of physical of human capital (in percentage
rate employed infrastructure (in percentage points)
(in percentage persons (in percentage points)
points) (in thousand) points)

2006 0.00 0.00 0 0.00 0.00 0.00

2007 0.20 −0.13 22 0.25 0.04 0.02
2008 0.97 −0.61 102 1.18 0.33 0.09
2009 2.52 −1.50 249 3.28 0.92 0.28
2010 5.38 −3.01 500 7.08 1.97 0.69
2011 7.31 −3.69 612 10.74 2.95 1.15
2012 9.19 −4.46 740 14.70 3.94 1.58
2013 11.70 −5.56 923 19.44 5.06 2.14
2014 10.47 −4.44 738 21.49 5.57 2.29
2015 9.44 −3.67 609 22.17 5.78 2.39
2016 6.45 −1.85 308 20.50 5.49 2.16
2017 5.62 −1.48 246 19.05 5.21 2.11
2018 4.98 −1.20 198 17.74 4.95 2.07
2019 4.55 −1.02 169 16.56 4.70 2.05
2020 4.19 −0.88 146 15.48 4.47 2.03

40
Table 4. Impact of NSRF on selected macroeconomic parameters in the years 2007−2020 by sectors
Impact of NSRF
on GVA* on GVA * on employment on employment on productivity on productivity
in industry in sector of in industry in sector of in industry sector of
sector market sector market sector market services
(%) services (thousand) services (in percentage (in percentage
(%) (thousand) points) points)

2006 0.00 0.00 0.00 0.00 0.00 0.00

2007 0.23 0.22 7.06 14.21 0.01 0.00
2008 1.15 1.00 34.12 61.94 0.07 0.03
2009 3.25 2.47 90.23 146.90 0.28 0.12
2010 7.51 4.97 197.03 281.48 0.84 0.34
2011 11.29 6.16 273.46 317.08 1.65 0.67
2012 14.63 7.47 345.58 372.15 2.37 0.92
2013 18.89 9.28 440.03 457.06 3.26 1.23
2014 18.11 7.54 397.30 325.26 3.80 1.39
2015 17.7 6.18 368.80 230.36 4.14 1.47
2016 13.71 3.18 267.36 40.22 4.08 1.41
2017 12.57 2.44 243.80 1.77 4.03 1.35
2018 11.50 1.95 220.27 −21.91 4.01 1.30
2019 10.65 1.65 202.75 −33.28 4.00 1.26
2020 9.89 1.43 187.29 −40.86 3.99 1.22
* GVA – Gross Value Added

Taking into consideration the potential impact that NSRF implementation would have on produc−
tion value in particular sectors of the economy, it seems that the strongest impact may be expected in
the industrial sector. In 2013, when it is expected to reach the highest level in relation to the baseline
scenario, it would achieve 18.89%. In the same year in the sector of market services it would be at the
level of 9.28%. Even after 2015 the level of actual value of industrial sector production and market
services and the level of GDP would be higher owing to implementation of NSRF.
As regards the labour market a clearly stronger impact occurs on the sector of market services,
where the employment level in 2013 may be higher by ca. 457 000 persons (as compared to the baseline
scenario). The productivity level in the service sector would continue to increase and hall achieve its peak
value in 2015. As an effect this would lead to a fall in employment (as compared to the baseline scenario)
in this sector following 2015, when implementation of NSRF would be completed. In 2013 in the industrial
sector the employment level would be higher by ca. 440,000 persons, and even despite discontinuation
of transfer after 2015 the increase in work places in this sector would continue to be noticeable (in 2020 the
number of employed persons would be higher by over 187,000 as compared to the baseline scenario).
To improve the level of objective nature of the evaluation of impact of structural funds on the
national economy and on regional economies, a comparison was performed of the evaluation of the
macroeconomic effect conducted using the HERMIN model with results obtained using an alternate
macroeconomic model. For this purpose use was made of the empirical hybrid model31. A comparison
of forecasts for the impact of EU funds on the growth rate of GDP obtained suing the above mentioned
models was presented in the below table.

31
The model developed by Instytut Koniunktur i Cen Handlu Zagranicznego (IKCHZ) [Foreign Trade Research Institute], adapted to projections
of GDP and its components, including export and import. The model combines a neoclassicistical theory assuring long−term balance to the economy,
with the new Keynes theory based on demand changes. Such a combination leads to overlapping on the long−term growth path of average period
economic fluctuations. More information on the model is available in “Ocena szacunkowa NSRF 2007−2013”, IKCHZ, September 2006.

41
 Table 5. Comparison of two options for GDP forecast in the years 2006−2015 obtained using the HERMIN
and empirical hybrid model
HERMIN Empirical hybrid model
Forecast for GDP growth rate (%) Forecast for GDP growth rate (%)
without NSRF full effect differences without full effect differences
of NSRF in growth rate NSRF of NSRF in growth rate
a b b−a c d d−c
2006 6.57 6.57 0.00 4.90 5.10 0.20
2007 5.38 5.59 0.21 5.00 5.21 0.21
2008 5.40 6.21 0.81 4.30 4.75 0.45
2009 4.03 5.62 1.59 3.90 5.30 1.40
2010 4.07 6.98 2.90 4.10 5.81 1.71
2011 4.06 5.97 1.91 4.20 5.16 0.96
2012 4.11 5.94 1.83 4.60 5.47 0.87
2013 4.17 6.56 2.39 4.40 5.18 0.78
2014 4.22 3.08 −1.15 4.20 4.24 0.04
2015 4.28 3.30 −0.97 4.10 4.27 0.17
Average
growth
rate 4.63 5.58 0.95 4.36 5.03 0.67
Source: WRDA, FTRI.

In columns (a) and (c) presented were results of simulations for the GDP growth rate, on the
premise of lack of NSRF implementation. As may be seen, even without financing within NSRF, the
Polish economy would be developing relatively rapidly. According to the methodology of the HERMIN
model the average growth rate would amount in this period to 4.63 %, and according to the hybrid model
4.36 % annually.
In columns (b) and (d) presented were results of simulations for the GDP growth rate taking into
consideration the investment shock such as NSRF. The average increase rate of GDP with full utilisation
of EU funds according to the methodology of the HERMIN model would amount to 5.58%, and according
to the empirical hybrid model 5.03% annually. This means that the full effect of EU funds invested in the
Polish economy would lead to increased GDP growth rate in that period on average annually by
0.95 percentage points (HERMIN) and 0.67 percentage points (hybrid model).
It should be additionally noted that NSRF would continue to increase the GDP growth for a limited
time (as the economy progresses from a lower towards a higher GDP level), and the GDP level would be
higher in a long term perspective. This shows that NSRF would not be increasing the growth dynamics
in a permanent way.
Results obtained with the use of different research tools are convergent and remain within
permissible error levels in modelling accuracy.

42
5. NATIONAL SOCIAL AND ECONOMIC GROWTH STRATEGY

5.1. Challenges

An analysis of the social and economic situation in Poland performed in the preceding chapters
indicates that in the medium−term horizon (the forthcoming 7 years) the most important challenge for
Poland is response to globalisation processes adequate to aspirations of the society, with simultaneous
increasing the degree of economic, social and territorial cohesion within EU.
In such a context a few basic areas may be indicated – challenges, which have to be taken into
consideration when formulating the medium−term development strategy.
A development strategy must have possibilities of implementation assured. Taking into considera−
tion functioning of the legal system and public administration and the state of dissatisfaction resulting
from operation of public institutions as compared to other EU member states, it becomes clear that
achievement of the planned objectives and priorities will not be feasible without a fundamental change
in the method of governance and administration of the state.
Consequently a challenge of fundamental importance for Poland is modernisation of the state
governance system and establishing of such a system of public institutions that would not impede social
and economic growth. This requires assuring a high functioning standard of state institutions with
Poland being a EU member, including the public administration (government and self−government ad−
ministration bodies), the justice department and public services. A factor of key importance for effective
functioning of the public sphere is appropriate establishment of mutual interactions between particular
governance levels and cooperation mechanisms with representatives of a civil society.
In the period of 2007−2013 Poland shall be the major beneficiary of the European cohesion policy.
Under that policy it could obtain a total of more than 67 billion euro divided into interventions within
ERDF, ESF and the Cohesion Fund. Total transfers for Poland would constitute over 20% of all financial
means designated from the EU budget for implementation of the cohesion policy. As regards the value
of the Polish GDP, transfers from the EU budget may achieve the average annual level close to 4%, but
taking into consideration additional financing of national resources (public and private resources),
implementation of the cohesion policy would involve a total of the equivalent of 5% Polish GDP (on
average annually). Taking into account the differentiated spatial arrangement of projects co−financed by
structural funds and the Cohesion Fund, in some voivodships the level of expenditures may at some
point approach even 10 % GDP within a given voivodship. The value of transfers and their very high
share in total expenditures allocated for growth related measures in Poland indicates the necessity of:
• assuring an effective implementation system for development programmes co−financed from EU
resources,
• execution of pro−development and pro−growth economic policy, which is to enable effects meas−
urable within the cohesion policy – increase of social, economic and territorial cohesion
of Poland and its regions as compared to the wealthiest EU countries and regions.
The ability of absorbing structural resources and the effectiveness of their utilisation in Poland may
affect the course of discussions which have been going on for many years in the EU on the necessity of
executing the cohesion policy in a form the main framework of which had been defined at the end of the
eighties in the 20th century, and of which Poland is currently the major beneficiary.
A serious challenge for Poland (as well as for other EU member states) will be to assure the
complementarity of objectives and instruments of execution of various national and European policies to
allow achieving the defined growth objectives. The scale of this challenge is a consequence of:

43
 • on the side of Poland – a distinct changeability in the general functioning principles and variability
of administrative structures responsible for programming and implementing of various develop−
ment measures,
• of the side of EU –lack of sufficient coordination mechanisms and noticeable level of autonomi−
sation in various policies (such as the cohesion policy, competitiveness related policy, Common
Agricultural Policy, Common Fishery Policy) and instruments of their implementation.
Those factors lead to the necessity of establishing on the national level of a stable legal framework for
execution of the growth policy and its financing and establishment, in the administrative sense, of a very
powerful coordination centre. Such a centre should be capable of assuring an integrated and coherent
approach that would take into account the national and European dimension in the programming stage.
Furthermore, it should also play the managerial and arbitration role for unavoidable conflicts that appear
in the stage of implementation of the development strategy.
Implementation of the strategy for assuring the optimum conditions for economic growth and ben−
efiting from all EU means requires rationalising the philosophy of public finance system functioning in
Poland, and in addition necessitates introducing changes and more flexible legislation related to opera−
tion of enterprises. A prerequisite is a complex reform of public finance, which covers changes in the
public expenditure structure (gradual increasing of expenditures on development), introducing mecha−
nisms of long−term financial planning and rationalisation of procedures related to spending and settle−
ment, including also control and audit of public means, consolidation of public finance, especially estab−
lishment of conditions for effective functioning of the public finance sector, rationalisation of public
expenditures and assuring to the state budget stable income sources. The deficit in the finance sector is
in Poland to a large extent of a structural nature. Social transfers, which come up to a significant part of
budget expenditures, limit the value of resources which could be designated for pro−development
investments, such as for example research and development, innovations, infrastructure, improvement
in functioning of public administration. Consequently it is necessary to continue reforms aimed at
decreasing the public finance deficit and public debt, increasing control over public resources, as well as
further decentralisation of public finance. This is to be done inter alia through introduction of a long−term
budgetary planning system.
A serious challenge for the social and economic development in Poland is the maximum possible
utilisation of available labour resources and strengthening of staff potential through effective fighting the
phenomenon of brain drain and emigration of manpower, and support for inflow to the labour market of
employees that leave sectors under the restructuring process (e.g. agriculture) or from abroad. The
situation on the labour market in Poland is characterised by high unemployment and low employment
indicator, which expressed wastage of the human capital. Effective undertaking and coping with this
challenge requires a bigger involvement of manpower on the labour market, which could be achieved
through creation of new work places, in particular in the service sector, which would be able to involve
employees from the industrial sector currently under modernisation, as well as agriculture and fishery
which are being restructured.
The development of knowledge based economy requires increasing investments in human capital.
In the present situation a lot of persons are unable to enter the labour market or keep their position due
to their insufficient professional abilities or their being inadequately adapted to requirements of employ−
ers. Improving the standard and quality of education would help improve opportunities for finding and
taking up jobs, and to improve mobility of persons on the labour market. Assuring a high education
standard to pupils, and students through appropriate institutional and organisational solutions intro−
duced to the education system would be transposed to their ability of appraising the existing situation at
the moment when they are entering the labour market, identification of own position on that market and
ability of making the right choices as regards the future professional career. The present education
model takes into account needs of changing expectations on the labour market to an insufficient degree.

44
Owing to needs of the knowledge based economy it is especially important to create conditions that
would enable a growth in the number pupils interested in exact sciences, and as a consequence – the
number of students choosing such an education path and employees with desired qualifications.
Another challenge for Poland in the medium term perspective is to limit the poverty range. As was
shown by the diagnosis, difficulties experienced by the Poles in connection with encountered problems
on the labour market are the most serious reason for their impoverishment. The relation between the
labour market and the social situation is two−directional. Problems on the labour market implicate lower−
ing the living standard of the population, while financial problems cause limited access to goods and
services which are a barrier in finding a job. A challenge is first of all to improve conditions in which
families live – family support in upbringing and education of children. Furthermore, there is a necessity
of regaining by social welfare institutions the function of social integration and activation, which were
limited by the exclusively interventional character of this element of social assurance. In the implemen−
tation process social welfare should be supported in social employment institutions, in diversified forms
of social economy, in measures with respect to professional and social rehabilitation of persons with
disabilities. Despite an insignificant number of immigrants and refugees as compared to the total national
population number, it may be expected that owing to Poland’s accession to the EU the inflow of people
from countries in which the living standard is more difficult would be increased. This would mean the
necessity of enforcing defined measures in relation to those groups to prevent the creation of poverty
enclaves and social exclusion. The civilisation and cultural dimension imposes on the public administration
and social partners a particular obligation of establishing conditions for appropriate progress of social
and professional integration processes directed at immigrants.
A serious challenge of a social nature with marked economic implications is the process of aging of
the population, which would lead to increasing the share of older persons in the population. This process
is particularly intensified in the second decade of the century, which means that today it has already
become necessary to establish a complex support system for elderly persons and to seek solutions
aimed at counteracting such process through an active pro−family policy and appropriate directing the
migration processes (including enticements to encourage people, who job migrated abroad, to return).
A challenge for the forthcoming years is supporting active aging and discontinuation of earlier ending
of the professional career. An additional cause for low employment indicators of older persons and
professional absenteeism is to a large extent the inferior health condition of the Poles as compared to
that of the EU inhabitants, while the average life span in Poland is lower than the average value for those
countries. In this respect an important role may be ascribed to the establishing of a modern health care
system, the basis of which would be to prevent health risks by assuring occupational safety and health
to the employees and by filling gaps in the health infrastructure – particularly in the context of standard
and accessibility of offered services.
An economy related challenge is increasing the innovativeness and competitiveness of the Polish
economy. A basic factor that determines the dynamics of economic development is the innovative ability
of enterprises. At present the main sources of competitive dominance of enterprises that operate in
Poland are low labour costs and a large market. However, due to the ongoing development trends and
the progressing globalisation, lasting development may only be guaranteed by establishing of compet−
itive dominance of enterprises, which base their operation on innovations. For this reason a considerable
challenge is to assure significant improvement of innovativeness in enterprises through enhancing the
importance of innovations in operation of enterprises and stimulating the increase of investment outlays.
Of key importance is here making use of results of research and development works by economic entities,
including transferring modern technological, product related and organisational solutions.
A fundamental challenge for Poland is to overcome an adverse, but justified, image of a country
that has a disturbingly bad condition of the road infrastructure and railway infrastructure with low effec−
tiveness, and peripheral nature that results from the degree of accessibility. Certain transport links

45
 of key importance are not available, and a considerable part of towns has insufficient links, which
is a serious accessibility barrier for many towns and regions. The modern infrastructure is a significant
factor in the operation of numerous enterprises that influences the economic and social attractiveness of
the regions. Poland should not only overcome infrastructural barriers but should also benefit from oppor−
tunities made available by its geographical situation and establish its infrastructural system to support
development of domestic and foreign investments. Reconstruction, modernisation and development of
the transport infrastructure must simultaneously take into account requirements of rational usage
of space and protection of natural resources, particularly taking into account the elimination, and at least
limitation of adverse impact of transport on the state of the environment. A condition for location of new
investments, which are expected to create new work posts in Poland, is assuring transport access to
areas of potential investments, providing appropriate systems for areas designated for investments, as
well as assuring well developed remaining technical infrastructure, appropriate quality of the natural
environment, feeling of safety, health conditions of the inhabitants and cultural attractions. Despite the
fact that after 1989 a considerable improvement has taken place in the natural environment state in
Poland and a radical reduction of adverse impacts, a challenge is to have environment parameters, and
in particular that of surface water, adapted to the values imposed by EU Regulations. This requires
executing measures in support of lasting and sustainable social and economic development and
continuing investments aimed at improving the quality of water, atmospheric air, and developing an
effective and modern system of wastes utilisation, pursuant to the concept of lasting and sustainable
social and economic growth. A serious task is to maintain areas and landscapes with the highest natural
values and minimisation of adverse impact on the environment of transport investments, natural calam−
ities and technological breakdowns.
Poland is not one of the EU states, in which territorial diversification measured by economic and
social indicators at the level of statistical regions in NUTS II (in the case of Poland – between voivodships)
may be considered to be excessive. Nevertheless, the polarisation of development trends recorded in the
past years (the weakest regions tend to develop on average much slower than wealthy regions, which are
more competitive in contemporary economic conditions) suggests considering undertaking spatially
directed intervention aimed at counteracting further diversification of the income level, access to good
standard employment and to modern social and technical infrastructure. A challenge faced by Poland in
relation to its territory is the most effective use of regional potential in support of development and modern−
isation processes which are taking place on the area of the entire country and a selective support (oriented
at pro−effectiveness) to regions with interior development conditions to allow them initiation of reconstruc−
tion of regional economies and consequently, over a longer period, increasing their own competitiveness.
In such a context – related to supporting growth and restructuring processes – particular impor−
tance is ascribed to utilisation of the potential available in towns, including especially major urban
agglomerations spaced rather evenly over the entire territory of Poland. Those towns would in the first
place attract potential investments. A special role is attributed to towns situated in the eastern part of
Poland – strengthening of the urban network on this area would mean hastening the rate of restructuring
among others through creation of non−agricultural work places and making balancing of development
levels possible.
A particular challenge for Poland, which is of a spatial, social and economic nature, is restructuring
of agriculture and rural areas. Poland is currently an EU country with the highest number of persons
employed in agriculture, and concurrently with the highest number of rural neighbourhoods. Poland’s
accession to the EU caused the process of population outflow from agriculture, and intensified structural
change processes taking place in rural areas. The rate of those processes would continue to grow in the
forthcoming years, as a consequence of which the economy must absorb labour resources released
from agriculture – lasting development of non−agricultural work posts and increasing the human capital
standard by increasing the level of education and professional abilities, and hence also the entrepre−
neurship and mobility growth.

46
 Another challenge that is related to transformation of rural lands is enhancing access of the inhab−
itants of those areas to basic services and those of a higher order, which are mainly located in urban
areas and in towns. In such a context restructuring of agriculture and rural areas in eastern regions
acquires particular importance, and is a requisite for an increase in growth rate and hence also improve−
ment of social and economic cohesion with the remaining part of the country.
Poland, which is going to be increasingly integrated with the global economy, would also be to an
increasing degree susceptible to potential social and economic crises on a global scale. The degree of
potential risk would depend both on macroeconomic stability as well as the economic structure (in
Poland many spheres still report an excessive dependence on traditional energy sources, a high
dependency on directions of import of raw materials and energy). An ever increasing problem could be
the risk of loosing the competitive dominance in many sectors as a consequence of transferring
economic operation to countries that offer lower costs of operation, including labour costs assuring
a similar standard of services and goods. An appropriate response to this challenge must take into
consideration the fact of spatial concentration of traditional sectors and industries – the areas of their
occurrence are potentially more endangered by the loss of work posts, loss of manufacturing basis and
the necessity of undertaking screening and restructuring measures.

5.2. Development Vision

An anticipated effect of the strategy proposed by NSRF is a marked improvement in the life quality
of the inhabitants of Poland, and achieving economic cohesion with other EU member states. Imple−
mentation instruments of such a strategy are both of an institutional and system related nature
(e.g. changes in conditions for business operation, privatisation, development of business environment
institutions, reform of the public finance system), as well as a financial one (investments in education,
the research and development sector, technical infrastructure and restructuring measures).
By 2013 Poland and its regions should become a place attractive for investing, living and working.
This means a necessity of a considerable improvement of the standard and accessibility of road trans−
port infrastructure, as well as of the environment infrastructure. All Polish regions should become linked
with the remaining EU countries by transeuropean infrastructural systems, and an infrastructure system
would be provided in all Polish poviat towns – of a European, inland or regional rank. Improvement of the
travelling standard in public transport means in nine urban agglomerations which according to the
ESPON programme classification have a European status would require introducing integrated systems
of mass transport means. Thanks to execution of undertakings aimed at improvement of road traffic
safety the number of road accidents, including the number of persons subject to fatal accidents would be
significantly reduced.
A high standard of the natural environment has a considerable importance for the living quality
of the society and for stimulating economic growth based on modern technologies. In relation to EU
ecological Regulations, Poland is expected to improve significantly the degree of implementation of
standards resulting from those Regulations by 2013. The share of inhabitants with access to sewerage
system and served by sewage treatment plants would approach values close to the average one in
Western Europe. A marked increase would be taking place in utilisation of renewable energy sources.
Measures related to nature and landscape protection would be the NATURA 2000 European Ecological
System, which is to enable preserving the diversity of species and natural values of the environment.
In addition implementation of investments under NSRF would be taking place taking into account needs
of limiting the greenhouse gas emission level to the atmosphere defined on the Community level.
In the years 2007−2013 Poland would be effectively enforcing objectives of the Lisbon Strategy,
which is to enable broader use of knowledge and innovativeness, in support of economic growth. More
and more resources would be designated by Poland for implementation of those objectives within the

47
 “Convergence” Objective of the cohesion policy, and by 2013 it is expected to approach the indicative
level of 60% recommended by the Commission. This would stimulate better directing of public invest−
ment outlays for development expenditures, which would be expressed inter alia by a significant in−
crease of the scale of investments made in research and development in comparison to the present
level of ca. 0.6% of GDP, and first of all directing those expenditures at investments in the sector of
enterprises.
In 2003 the Polish economy is expected to be an innovative economy thanks to significant increasing
by industrial enterprises of outlays on innovative operation, including the share of expenditures on
R&D and stimulating the cooperation of scientific entities with the industrial and service sector. The
sector of small and medium enterprises is going to get much better conditions for development owing to
implementation in Poland of the European Charter for Small Enterprises, including especially those
concerning simplification of regulations as regards initiation and running business operation and broadly
understood legal environment affecting the entrepreneurship climate.
On the entire area of Poland universal access to the Internet shall be provided. Through the process
of informatisation in public services and business environment, to be established and implemented is
e−economy, e−administration, e−health, e−education, and opportunities that result from that process would
be utilised more effectively for further development of the economy. An effective solution would be
provided for the problem of access to financing, including especially such groups, as: potential entrepre−
neurs, microenterprises, non−government organisations.
Pursuant to the present economic trends Poland will be a country in which employment in the
services sector would continue to grow and the services standard would be improved, and simultane−
ously employment in agriculture would fall. An increase is to take place in particular the role of market
services sector, including especially inland and foreign tourism, which, making use of good state of the
natural environment and cultural values would become an important source of employment and income
for the society.
Owing to the progress in demographic processes, a significant increase in professional activity
is expected to be taking place in Poland until 2013, which would allow better use of the potential of youth
and extend the professional activity of persons at an age approaching retirement. This should allow
a significant reduction in the unemployment rate, and incentives resulting from improved situation on the
labour market should in turn stimulate the return of a considerable part of prospective young employees
to Poland. By 2013 the labour market would be made more flexible, thanks to which employees would
need less time and effort to find employment, and entrepreneurs should be able to satisfy their staffing
needs quicker. A life long learning model would be introduced, which is to enable qualification enhance−
ment during the entire professional career. The share of youth acquiring higher education would grow,
and the education structure would be better adapted to needs of the market. As regards the social
policy, an integrated system of the state policy would be developed, aimed at enhancement of the social
integration with mutual supporting of the social policy and policy in support of growth and jobs, including
also good governance, clarity and involvement of all entities in designing, implementation and monitoring
of social policy.
By 2013 Poland is to become a state friendly to the citizens, with efficiently operating modern
administration, which provides high standard public services, and in which corruption would be eliminated
and an optimum safety level assured. The clerical system of the government and self−government
administration would assume a higher professional standard, and the state would be able to assure
public safety, support in maintaining a healthy manpower, which is a prerequisite for economic growth.
The system of population protection and rescuing, including medical rescue systems, prophylactics,
elementary and specialist medical care would be clearly improved, and promotion of a healthy style of
living would be intensified.

48
5.3. Basic Rules

Delivery of development strategy should be based on rules and values stemming from the adopted
system of community and national legal regulations, as well as on additional rules whose application is
indispensable for achieving the set objectives.
When using instruments to implement objectives of NSRF, the following rules will be applied:
Additionality – financial resources coming from the EU budget do not substitute public expendi−
ture and are only their supplementation. Funds stemming from the European Union cause in a state the
“leverage effect”, i.e. they encourage the involvement of private sector in realization of activities which
are co−financed from the EU funds. The objective for application of the additionality rule is simultaneously
to prevent replacement of national resources by Community funding.
Complementariness and cohesion with other community policies – activities taken up by
Poland on the national and regional level, co−financed by the structural funds and the Cohesion Fund,
are consistent with the priorities determined by the European Community. The cohesion of structural
funds interventions with other activities, policies and priorities of the Community stems from the CSG,
NSRF and provisions of the operational programmes.
Concentration – in order to achieve the assumed objectives, the financial resources and regu−
latory attempts will be concentrated on limited areas, and with regard to space on the limited territo−
ries. The basic fields of support will be those which guarantee the maintenance of high growth and
employment.
Coordination – the European Commission and Poland maintain coordination between the aid
from the particular structural funds and the Cohesion Fund, the European Agricultural Fund for Rural
Development, the European Fund for Fisheries, and the interventions of EIB and other existing financial
instruments, as well as between the scope of intervention of co−financed instruments using EU means
and priorities and measures defined in the National Reform Programme in favour of execution of the
Lisbon Strategy.
Evaluation – shall be used to improve quality, effectiveness and cohesion of interventions coming
from the Funds and improvement of strategy of operational programmes implementation taking into
account specific structural problems affecting the Member States and regions, and simultaneously
taking into consideration the objective of sustainable development and other pertinent community
regulations as regards environmental impact and strategic evaluation of environment.
Partnership – the objectives of NSRF are implemented in close cooperation of the European
Commission and Poland according to the principle of partnership. During the preparation, implementa−
tion, monitoring and evaluation of operational programmes, Poland cooperates according to the principle
of partnership with competent bodies of governmental and self−governmental administration and other
public bodies, economic and social partners and other competent entities. The partnership
is realized with full respect of institutional, legal and financial competences of pertinent partners.
Improvement of governance (good governance) – improvement of governance is related to gen−
eral improvement of quality of designing and implementing of broadly understood regulatory and legis−
lation instruments, strengthening of standards and ethical behaviour in public life and in public adminis−
tration, improvement of functioning of justiciary, improvement of quality of staff in governmental and self−
governmental administration and promotion of dialogue and partnership between institutions concerned.
Programming – objectives of structural funds are implemented within the system of multi−annual
programming organized in several stages, encompassing determination of priorities, financing and system
of management and control. Programming is of complex and complementary nature what demands
close coordination of carrying out and achieving objectives of the EU cohesion policy on the community
level and in Poland at the central and regional level.

49
 Equality of opportunities – under execution of NSRF support is planned for principle of equality
of opportunities, which means equal opportunities for men and women, and taking into account of equality
of opportunities at particular stages of structural funds implementation. This is connected with
preventing all symptoms of discrimination based on sex, race or ethnic belonging, religion, or convictions,
disability, age or sexual orientation.
Civil society – creation of a third sphere, apart from public and business sphere, for civil
activity, in which there are functioning possibilities of institutions, organizations, social groups
and individuals which have the feeling of interdependence and voluntarily cooperate with each
other in favour of realization of common interests, improvement of life of individuals and the society
as a whole.
Subsidiarity – to secure an appropriate efficiency of the EU cohesion policy Poland should strive
at decentralization and deconcentration of performance of tasks related to programming and manage−
ment of structural funds through transfer of those competences to a lower level, which is to assure
a higher effectiveness and efficiency, i.e. to both the central and regional level.
Sustainable development – the basic rule applied during the delivery of the NSRF objectives
is seeking for a consensus between economic efficiency of measures taken up and requirements related
to promotion of principles of sustainable development, with simultaneous preservation of equality
of opportunities of women and men and preservation of natural environment quality.

5.4. Objectives of Cohesion Policy in Poland, in Support of Economic Growth and Jobs

Owing to the low competitiveness of the Polish economy expressed inter alia by the low level
of GDP per capita as compared to the average value in EU, in 2007−2013 all voivodships in Poland were
qualified to areas of the “Convergence” Objective within the EU cohesion policy.
Taking into account the performed analysis, which pointed at disparities in the social and economic
development of Poland and its particular regions, as compared to other EU member states, and in
response to the renewed Lisbon Strategy and provisions of Integrated Guidelines for Growth and Jobs
for the years 2005−2008 (IG)32, for which an instrument for implementation in Poland is NDP, the strategic
objective of the National Strategic Reference Framework 2007−2013 has been formulated.

The strategic goal of the National Strategic Reference Framework for Poland is creation
of the conditions for the growth of competitiveness of knowledge based economy and
entrepreneurship which are to assure an increase in the employment and in the level
of social, economic and territorial cohesion.

The above objective was formulated in relation to the objective of the European cohesion policy –
funds spent within NSRF would guarantee execution of the objective specified by the Treaty aimed at
increasing the cohesion of Poland and its regions through structural reforms and concentration
of expenditures in a few areas of great importance for establishing conditions aimed at hastening growth
and increasing employment.
For such a formulated objective, an appropriate, pro−growth and pro−employment national eco−
nomic policy is of the biggest importance. It should take into account continuation and full implementation
of structural reforms in the area of public finances, functioning of administration and justiciary and
of a system of legislating and implementation of law. Such measures are directly included in implementation

32
Integrated Guidelines in support of growth and jobs 2005−2008 – strategic Community document, which contains guidelines for growth and job,
in support for execution of EU priorities formulated in the renewed Lisbon Strategy, COM (2005) 141 of 12 April 2005.

50
of the Lisbon Strategy objectives and as such are fully compliant with the growth strategy presented by
the Polish government in NDP.
To emphasise the complementary nature of objectives set out for the economic, social and cohe−
sion policies defined in NDP and NSRF, Poland is going to designate for objective connected with the
Lisbon Strategy at least 60% of expenditures borne within all operational programmes executed in the
years 2007−2013 within the “Convergence” Objective. The involvement degree of particular programmes
in implementation of objectives defined in NDP would vary, however, formulation of horizontal objec−
tives and introduction of clear principles and rules at the NSRF level – related to the method of including
and compliance with the Lisbon Strategy at the level of operational programmes – allows maintaining
balance between achievement of pro−effectiveness and equalising objectives.
Implementation of the strategy presented in this document is also a basis for establishing of condi−
tions for lasting growth, which would respect environmental conditions. In such a context emphasis would
be placed on a complex approach to issues connected with problems that result from climate changes.
Formulation of principles related to non−application of discrimination would also be an important
element in achieving a general European objective of assuring equal opportunities for women and men.
To sum up, the strategy outlined in this document is to a large extent oriented at assisting improve−
ment in functioning effectiveness of institutions and functioning mechanisms of the state, as well as at
granting assistance to those who present projects of the biggest importance for increasing competitive−
ness of the Polish economy and particular regions with simultaneous introduction of screening mecha−
nisms for those social groups and spatially delimited problem areas which at present have no sufficient
internal potential to benefit from growth processes. Implementation of the strategy would also comprise
concentration in disbursement of financial means and introduction of organisational changes especially
on areas that determine the competitive position of Poland in the EU and worldwide: selected elements
of transport infrastructure, environment infrastructure, innovations in enterprises, in the research and
development sector and in education.
Balancing development opportunities of social groups and geographic zones would be mainly
taking place though elimination of barriers that impede improving professional, social and spatial mobility,
and assuring equal access to the social and technical infrastructure which is of fundamental importance
for establishing the competitiveness of Poland (related to transport, education, health and culture),
as well as access to basic public services.
The strategic objective will be achieved through delivery of horizontal specific objectives. This
would help in defining key indicators, which are to allow an analysis of global results achieved within
a consistently implemented policy, which also means that all programmes, activities and projects taken
up under the NSRF implement them simultaneously, however in a different scope. Horizontal objectives
of the NSRF are:
1. Improving the functioning standard of public institutions and development of partnership mech−
anisms
2. Improving the human capital quality and enhancing social cohesion
3. Establishment and modernisation of technical and social infrastructure crucial for better compet−
itiveness of Poland
4. Improving the competitiveness and innovativeness of enterprises, including in particular the
manufacturing sector with high added value and development of the services sector
5. Increase of the competitiveness of Polish regions and preventing their social, economic and
territorial marginalisation
6. Balancing growth opportunities and supporting structural changes on rural areas.
The presented arrangement of horizontal objectives reflects the main focus in directions for the
cohesion policy aimed at achieving the strategic objectives. A basic condition for execution, but an

51
 external one in relation to NSRF objectives, is taking up endeavours in the sphere of regulation (public
finance reforms, legal system of business operation, labour market functioning etc.). Indispensable
measures in this scope for the forthcoming years have been defined in detail in NDP and in the Imple−
mentation document for NDP.
The first horizontal objective concerns strengthening the sphere of management and partnership,
and responds directly to formulated challenges connected with functioning of the state and its public
institutions on the national, regional and local levels. Implementation of the objective is also directly
connected with opportunities for full and effective use of all resources available to Poland within the
European cohesion policy 2007−2013.
Three consequent horizontal objectives related to human resources, infrastructure and the
production and services sphere are directly related to the Lisbon Strategy objectives implemented in
Poland (pursuant to NDP) – their implementation within the cohesion policy shall allow better competi−
tiveness of the Polish economy and would be determinant for creation of new work posts.
The last two horizontal objectives are related to the spatial dimension of the cohesion policy. All
measures undertaken in NSRF shall assist their execution, albeit in different ways.
Implementation of the objective related to regional competitiveness and counteracting marginali−
sation is to facilitate the fullest possible use of endogenic potential in each of the regions, and at the
same time enables concentrating endeavours of the cohesion policy on areas with the most serious
development problems that may not be overcome on the basis of internal resources.
In the situation of Poland the determination and emphasising the importance to issues of restruc−
turing on rural areas within the cohesion policy and balancing development opportunities for their inhab−
itants justified by the scale of the challenge – civilisation related lagging behind on many rural areas
and the outflow of population working in agriculture anticipated in the forthcoming years. Restructuring
of rural areas is an element of regional policy, and in a broader perspective, the social and economic policy.
Two objectives related to space − Increase in the competitiveness of Polish regions and preventing
their social, economic and spatial marginalisation and Balancing growth opportunities and supporting
structural changes on rural areas set out the elementary directions for usage of all financial resources
made available within NSRF. Those objectives would be taken into consideration not only in the event of
implementation of tasks addressed directly territorially (within regional operating programmes and terri−
torial cooperation programmes, as well as within some sectoral programmes), but would additionally be
taken into account in planning national infrastructural investments, expenditures related to human capital
and education as well as support for enterprises. Such an approach would directly allow achievement of
the desired territorial effect within sectoral programmes (e.g. forming a network of motorways and
expressways would have to cover the issue of competitiveness increase in regions by providing links
between urban centres and the issue of counteracting marginalisation of certain regions by assuring
including areas of peripheral rank into the national and European transport network).
Correlations between guidelines related to the cohesion policy within CSG, and specific objectives
proposed in NSRF are presented in the below diagram.

52
Scheme 1. Relation between priorities defined in CSG and horizontal specific objectives in NSRF.
COMMUNITY STRATEGIC GUIDELINES NATIONAL STRATEGIC REFERENCE
FRAMEWORK
MAKING EUROPE AND ITS REGIONS MORE ATTRACTIVE PLACES IN WHICH TO INVEST AND WORK
1.1.1 Expand and improve of transport infrastructures Objective 3
1.1.2 Strengthen the synergies between environmental Establishment and modernisation of technical
protection and growth and social infrastructure crucial for increase
1.1.3 Address Europe’s intensive use of traditional of Poland’s competitiveness
energy sources
IMPROVING KNOWLEDGE AND INNOVATION FOR GROWTH
1.2.1 Increase and better target investment in RTD Objective 4.
1.2.2 Facilitate innovation and promote entrepreneurship Improving the competitiveness and innovativeness
1.2.3 Promote the information society for all of enterprises, including in particular the
1.2.4 Improve access to finance manufacturing sector with high added value
and development of the services sector
MORE AND BETTER JOBS
1.3.1 Attract and retain more people in emplyment
and modernise social protection systems
1.3.2 Improve adaptability of workers and enterprises Objective 2.
and the flexibility of the labour market Improving the quality of human capital
1.3.3 Increase investment in human capital through and enhancing social cohesion
better education and skills
1.3.4 Administrative Capacity Objective 1.
Improving the functioning standard of public
institutions and development of partnership
mechanisms
1.3.5 Help maintain a healthy labour force Objective 2.
Improving the quality of human capital and
enhancing social cohesion
THE TERRITORIAL DIMENSION OF COHESION POLICY
2.1 The contribution of cities to growth and jobs Objective 5.
Increase in the competitiveness of Polish
regions and preventing their social, economic
and spatial marginalisation
2.2 Support the economic diversification Objective 6.
of rural areas, fisheries areas and areas Balancing growth opportunities and supporting
with natural handicaps structural changes on rural areas
2.4 Cross−border cooperation Objective 5.
2.5 Transnational cooperation Increase in the competitiveness of Polish
2.6 Interregional cooperation regions and preventing their social, economic
marginalisation and spatial

53
 All horizontal objectives of NSRF are covered by three horizontal priorities and the CSG priority
related to space, which assume:
1) making Europe and its regions more attractive places in which to unvest and work,
2) improving knowledge and innovation for growth,
3) more and better jobs,
4) the territorial dimension of cohesion policy.
Objective 1 of NSRF – Improving the functioning standard of public institutions and development
of partnership mechanisms – is included in CSG Guideline No. 1.3.4 – Administrative Capacity.
Objective 2 of NSRF – Improving the quality of human capital and enhancing social cohesion –
is compliant to CSG guidelines No. 1.3.1 – Attract and retain more people in emplyment and modernise
social protection systems, No. 1.3.2 – Improve adaptability of workers and enterprises and the flexibility
of the labour market, and 1.3.3 – Increase investment in human capital through better education and
skills. Furthermore, in the discussed objective also Guideline No. 1.3.5 shall be executed – Help main−
tain a healthy labour force.
CSG Guidelines No. 1.1.1 – Expand and improve of transport infrastructures, No. 1.1.2 – Strengthen
the synergies between environmental protection and growth and No. 1.1.3 – Address Europe’s intensive
use of traditional energy sources within priority CSG Making Europe and its regions more attractive
places in which to unvest and work, would be achieved through implementation of Objective 3 of NSRF
– Establishment and modernisation of technical and social infrastructure crucial for better competitive−
ness of Poland.
To objective 4 of NSRF – Improving the competitiveness and innovativeness of enterprises,
including in particular the manufacturing sector with high added value and development of the services
sector – added were guidelines covering the CSG priority Improving knowledge and innovation for growth.
Objective 5 of NSRF – Increase of the competitiveness of Polish regions and preventing their
social, economic and territorial marginalisation – is to fulfil CSG guidelines No. 2.1 – The contribution of
cities to growth and jobs, No. 2.4 – Cross−border cooperation, No. 2.5 – Transnational cooperation, and
No. 2.6 – Interregional cooperation, within priority CSG The territorial dimension of cohesion policy.
Objective 6 of NSRF – Balancing growth opportunities and supporting structural changes on rural
areas – is on the other hand a reflection of territorial CSG Guideline No. 2.2 – Support the economic
diversification of rural areas, fisheries areas and areas with natural handicaps.
Implementation of the predetermined main objective and horizontal objectives shall at the same
time support the fulfilment of the sustainable growth principle through social and economic develop−
ment, which takes into account the necessity of preserving values of the natural environment. The
principle of lasting development would be implemented through operational programmes, which are to
contain obligations related to respecting of this principle. Each of the operational programmes will con−
tain information concerning the undertaken commitments as regards respecting the principle of sustainable
development and the method of horizontal integration of this principle within the implementation system
(e.g. environmental selection criteria, monitoring indicators etc.).

5.4.1. Improving the functioning standard of public institutions and development of partnership mechanisms
Diagnosis of the situation in the scope of labour standard and ability to implementing elementary
tasks of the Polish institutional and regulative system indicates the necessity of a fundamental modern−
isation of the way in which state institutions are functioning, including administration and the justiciary
sector and development of social dialogue and partnership. As was shown by experience gained by
many countries, a change in the method of ruling a country, stimulating dialogue with social and eco−
nomic partners and limiting the phenomena of pathology related to the government, including corruption,

54
may allow achieving results such as enhancing possibilities of creating development strategies and their
effective execution, implementation of effective management methods, more effective usage
of human resources in the public sector and endogenic potential of states and regions. Measures
undertaken to improve the management standard should allow additional effects such as bigger
involvement of the society in growth processes and increased satisfaction level of the society, including
the feeling of safety.
Measures in support of enhancing the administrative potential in Poland are first of all aimed at
preparation of the Polish administration to execution of its basic role, and namely creating conditions for
social and economic growth of Poland. In this respect an issue of fundamental importance is enhancing
abilities of working out and enforcing long−term strategies and programmes, respecting the partnership
rule. This objective is coherent with objectives of the Lisbon Strategy which postulate better develop−
ment of policies and their execution to allow establishing conditions for growth and jobs. This is trans−
posed to CSG, which indicate that effective administrative capabilities of the member states are an
indispensable condition for inland and EU growth and jobs. The main provision of the reform in the
public sphere it having it based on modern standards of ruling, i.e. the principle of subsidiarity, partner−
ship and civil dialogue. Execution of this type of measures is connected with enforcement of good
governance principles, comprehended as efficient and partnership based on ruling with the application
of openness, responsibility, effectiveness and cohesion principle, which is also of fundamental impor−
tance for actual execution of the national growth strategy, including provisions of NSRF. Such under−
standing of governance complies to CSG, which assume support for public−private dialogue, as well as
the implementation of open government rules. This is reflected in the content of CSG Guideline No.
1.3.4 – Administrative Capacity.

Enhancing abilities of public institutions to efficient and effective execution of tasks

The establishment of appropriate conditions for social and economic development in Poland
requires improvement of the standard of created legal acts, public policies and programmes, improving
institutional effectiveness of public administration, improving the standard and accessibility of public
services and better professional qualifications of the clerical staff. The assumed support spheres con−
form to CSG, which assume support for development of effective policy and its enforcement, as well as
improving the clarity and effectiveness of functioning of the public services. Furthermore, the planned
investments in improvement of qualifications and abilities of the clerical staff that accompany processes
of enhancing administrative abilities may be included in general provisions of the Community guideline
related to a bigger number of better work places.
Support for the processes of development and implementation of policies and programmes will be
executed through modernisation of the organisation method of those processes, including especially
enhancing cooperation and coordination between public administration units and through enhancing
abilities of programming, monitoring, implementation and evaluation of development policies, directed
at achieving concrete measurable targets connected with objectives of the Lisbon Strategy and the
European cohesion policy. Support in this scope is strictly correlated with improving the standard and
accessibility of public services, which for the citizens are a visible effect of implementation and enforce−
ment by the administration of legal regulations, assumed policies and programmes. The issue of
improvement of public services standard is especially important for execution of subsidiary role of
administration, and as a consequence contributes to changing the perception of the Polish administration,
as well as the clerks by the citizens. Measures connected with improving the quality of client services by
the public administration are not only covered by Guideline 1.3.4 of the CSG.
An element necessary for improvement of functioning effectiveness of public administration is
informatisation of the administration authorities, which is expected to rationalised operation of public
administration, as well as enhancing accessibility and quality of public services. Efficient and effective

55
 implementation of public tasks and also easy access to public information leads as a consequence to
reduced administrative barriers for business operation of entrepreneurs, as well as to facilitating and
hastening the information flow between various administration levels and the customer. Operations
connected with enhancing functioning effectiveness of administrative authorities through their informa−
tisation are not only covered by the scope of Guideline 1.3.4. CSG, but also in Guideline 1.2.3. Promote
the information society for all.
Processes that take place in administration, including especially the execution of policies and pro−
grammes, may not be executed in an efficient and effective way without well functioning institutions
involved in management and implementation of public policies and programmes. Effectively functioning
institutions make use of available resources in an optimum way, hence preventing manipulation, wast−
age of public resources, or delays in execution of tasks. Enhancing the institutional effectiveness shall
be achieved through modernisation of management processes in public administration, including first of
all the implementation of a universal management system by objectives and results. Among processes
that take place in public administration i.e. process, finance, risk and information management; worthy
of particular attention is human resources management, because it affects not only institutional efficien−
cy, but also the quality of employed staff and the effects of their work.
A particularly important element in establishing appropriate administrative potential are invest−
ments in the human capital involved in processes of development, implementation, monitoring and
evaluation of public policies and programmes and providing public services. Taking into consideration
problems encountered by the Polish administration, connected with large rotation, especially among
younger staff, lack of desired qualifications and no suitable motivation schemes, the Polish administra−
tion will to a large extent require intensified investments in development of abilities and knowledge of
clerical staff through development of appropriate programmes for training and life long learning, as well
as continuation of introduction of civil service standards in self−government administration, lasting shap−
ing and strengthening of ethical attitudes.
As requirements of Community guidelines impose taking into consideration specific situation and
problems of member states to allow most effective counteracting barriers for growth and jobs, measures
in Poland would be focused fist of all on support for development and implementation of modern system
solutions that rationalise the functioning of public administration on all levels of the territorial division.
This requires making a review of administrative structures, an audit of public administration functioning
and as an effect development of a diagnosis for its condition, and for its potential as well. This would
enable appropriate identification of tools and instruments in response to needs of the sector and use in
achievement of a qualitative change of functioning of public institutions. The cohesion policy is to sup−
port horizontal tasks for enhancing administrative capabilities in Poland addressed at all public adminis−
tration units in Poland comprising in its scope government and self−government administration entities.
In addition, the execution of planned measures of a horizontal nature would take into consideration
special needs of administrative units in areas that require intensified support, which comprise the judiciary
sector and health service, the reform of which would to the greatest extent contribute to better
functioning of the state.

Strengthening partnership mechanisms between public administration and the third sector
Support for the establishment of a civil society is an indispensable element in creation of a mod−
ern and partnership based state. Execution of public tasks should be based on cooperation between
public administration and social partners, non−government organisations and trade organisations.
Such formulation of support for administrative abilities converges with provisions of A White Paper
on European Governance, as well as pursuant to CSG, which assume that supporting dialogue
between relevant public, social and private entities provided that good quality policies and programmes
are developed.

56
 A diagnosis of this sector indicates weaknesses connected with insufficient involvement of the
citizens in social activity, with undeveloped culture of cooperation between public administration and
institutions of the third sector and with insufficient preparation of the third sector for implementation
of public tasks. Those problems result from insufficiently developed civil society, which is a conse−
quence of a short tradition of free civil operation in Poland.
To activate the third sector and to enhance its role it is necessary to establish conditions for devel−
opment of the civil society in Poland, including first of all non−government organisations. This requires
both the development of cooperation mechanisms between the public administration and institutions of
the third sector, as well as propagation of a partnership based style of creation and execution of public
tasks. In addition, implementation of the partnership style of cooperation necessitates preparation of non−
government organisations to fulfilling the role of an active partner for public administration and improving
the potential of those institutions as regards effective and professional providing public services.

Support for institutions that execute NSRF

Enhancing administrative capabilities of public institutions would also help improve the efficiency
and effectiveness of management and execution of the cohesion policy. The evaluation of the imple−
mentation system of the Community Support Framework in the years 2004−2006 indicates the exist−
ence of particular problems and needs of institutions that handle structural funds. Hence institutions
that deliver NSRF in the years 2007−2013 require separate support, granted within technical aid.
Experience of the present programming period of 2004−2006 indicate that main weaknesses of the
management and implementation system of the cohesion policy comprise: significant rotation of
personnel connected mainly with low wages in administration; insufficient equipping of work posts
with modern equipment, including also the absence of an effectively operating informatic monitoring
and control system; insufficient information flow between entities involved in the implementation
process of CSF, as well as no effective information policy concerning opportunities and procedures
of obtaining resources from structural funds.
In response to problems diagnosed in NSRF plans assume undertaking measures in support of
better employment stability and improving the standard of human resources involved in delivery of the
cohesion policy in Poland. Effective execution of management and control processes related to structur−
al funds also necessitate assuring appropriate technical conditions and resources. It is also necessary
to take up communication and promotional measures aimed at propagation of information and promo−
tion of operation in structural funds in Poland and better information and experience flow between
participants of the NSRF implementation process.

5.4.2. Improving the human capital quality and enhancing social cohesion
Despite a gradual improvement taking place on the labour market, the employment ratio in Poland
continues to be the lowest among all EU countries. A problem of key importance is full and appropriate
utilisation of the human capital and labour resources standard to have it enhance economic growth,
competitiveness and innovativeness of the Polish economy, reducing disproportions in growth between
Poland and the EU, and particular regions. The strategic objective set up by NSRF conforms to provi−
sions of the Lisbon Strategy and is comprised in priority 1.3 defined in CSG concerning More and better
jobs. Additionally the objective involves recommendation concerning the development of human capital,
which are emphasised by CSG guidelines in support of increasing professional activity and raising the
employment level (1.3.1), enhancing adaptation abilities of employees and enterprises and flexibility of
labour markets (1.3.2), increasing investments in human capital through better education and improved
qualifications (1.3.3). Striving at improvement of the human capital standard and social cohesion measures
are focused concurrently on the European Employment Strategy and its objectives, which comprise
achievement of full employment, improving labour standard and effectiveness, as well as strengthening

57
 social cohesion and reducing social exclusion33 . An indispensable element for all the undertaken meas−
ures could be to take into consideration assuring equal opportunities – propagation of equal opportuni−
ties for women and men, persons in an inferior situation, including persons with disabilities. Concurrent−
ly, particular importance could be gained by fighting discrimination and integration of immigrants and
minorities.

Improving the education standard of the society and improving the education level
As was shown by the diagnosis of development conditions, in the past few years a value of human
capital in Poland is the growing education level of the young generation and better readiness of becom−
ing adapted to changing economic conditions. A shortcoming is the low education or inadequate adap−
tation of the capabilities to the needs of the contemporary labour market, especially among older
persons. Intensification and hastening economic integration processes in the European Union, increasing
foreign investments and progressing changes in the employment structure, without active measures
in the scope of education, supplementing projects related to the labour market, may still enhance those
adverse processes.
In the forthcoming years the fundamental objective of the growth strategy pursuant to Guideline
1.3.3 defined in CSG Increase investment in human capital through better education and skills, decreas−
ing the number of persons the main problem of whom in entering the labour market or maintaining
a position on it is the absence of adequate education, or limiting the number of persons with mismatched
professional capabilities. The achievement of a suitable education standard would comprise all age groups.
On the one hand it would be focused on guiding the choice of the educational path connected with the
future profession, as regards young people – those who are about to enter the labour market. In such
a context particular attention would be paid to measures addressed to young people (youth centres and
organisations) including those encountering difficulties in access to education. And on the other hand this
will also concern older persons who experience difficulties in maintaining their position on the labour
market due to their not having appropriate qualifications, as well as the same category of persons who not
only because of age but also due to their low education level have problems with finding employment.
As regards education a policy shall be executed which is mainly based on Guideline 23 Expand
and improve investment in human capital and Guideline 24 Adapt of education and training systems in
response to new competence requirements defined in IG. In the forthcoming years measures shall be
executed which would help increase accessibility of education on all education levels, linking education
with requirements of the labour market, improving the standard of offered education services and
effectiveness of education.
The specific situation of Poland as compared to EU as regards accessibility of educational services
enforces taking into consideration the role of education already at the stage of access to pre−school
education, first of all on rural areas. An important element in increasing the number of persons with
appropriate professional qualifications would be assuring appropriate conditions for education on higher
education levels, i.e. secondary and higher education, particularly taking into account pupils and
students coming from rural areas, urban areas afflicted by poverty, families with social and upbringing
dysfunctions and persons with disabilities.
A part of the graduates, despite their acquired education, has difficulties with finding jobs. The
present education model to an unsatisfactory degree takes into account actual expectations of the
labour market. Competency based mismatching of supply and demand for work is one of the reasons for
such a phenomenon. Consequently there is a need of more rational stimulation of paths for educational

33
The analysed provisions are compliant and complementary with national documents i.e. draft National Employment Strategy for years 2007−2013,
as well as with the National Strategy of Social Integration (adopted by the Council of Ministers on 3 August 2004.), Support Strategy for Develop−
ment of Civil Society for the years 2007−2013 (adopted by the Council of Ministers on 7 June 2005.) and Strategy for Development of Education for
the years 2007−2013 (adopted by the Council of Ministers on 2 August 2005).

58
development selected by young persons and having them adapted to requirements of the labour mar−
ket. This would be possible through working out tools for evaluation of consequences of measures
undertaken in the sphere of education and higher education. Appropriately strengthened system of
internal exams would assure reliable information concerning education results. The above system sup−
port would as an effect support pupils and students in making choices of the future career, which
assures finding a job and linked with implementation of individual abilities, needs and interests. Along
with the process of having schools prepared to focusing on needs of modern economy, it may be
presumed that the most important challenges faced by the education system in Poland should include
continuation of undertakings connected with raising the education standard. The execution of those
provisions would be taking place through measures concentrated on rationalisation of management of
processes and institutions that form the education system in Poland. A crucial element of the strategy of
raising the education standard is additionally establishing the framework for effective functioning and
raising competences of the teaching staff (including also the academic staff) and administrative staff
that manage the education system. It is of importance to improve broadly understood competencies of the
scientific sector staff, including also with respect to managerial abilities and commercialisation of results of
research and development works, which would allow their utilisation in the economy.
An integral part of measures executed in the sphere of education would be delivery of Guideline
1.3.2 Improve adaptability of workers and enterprises and flexibility of the labour market defined in CSG.
In modern economy participants of the labour market must be to an increasing extent prepared to life−
long learning – both in a situation of technological changes and innovations, as well as consequences
of occurring changes which result from processes of economic restructuring. To enable Polish employees
to maintain their position on the labour market and to allow them extension of their careers, in the
forthcoming years it will be necessary to establish a system and culture of life long learning through
execution of projects in support of the learning process in all forms and expressions of human activity.
Increasing investments in the human capital through life long learning will be one of the responses to
Guideline 17 Implement employment policies aiming at achieving full employment, improving quality
and productivity at work, and strengthening social and territorial cohesion. It is necessary to assure such
attitudes of employees that their decisions concerning a change of qualifications or improvement
of skills had a professional character and were pro−active. The cohesion policy will be addressed at
supporting lifelong vocational schooling designated for groups of employees, including in particular SMEs,
involved in industries of high risk of the economy, and as regards situations in given voivodships – in
sectors that predetermine competitiveness of regional economy, creation and improved functioning of
the counselling and training system designated for groups of employees in sectors with particularly low
qualification level, such as agriculture, mining industry, textile industry and automotive industry.
Within the framework of this objective all measures shall be directed at practical fulfilment of the
equal opportunity rule.

Active policy of the labour market

As regards the demographic aspect, Poland has a significant increase in labour resources and
a marked unemployment rate, which is the highest in EU, and which will probably remain on this high
level. Additionally there is a large scale phenomenon of concealed unemployment and the “grey zone”.
The high unemployment rate and the low level of professional activity and employment indicators
diverge considerably from levels set out by the Lisbon Strategy. Indicators concerning young people are
highly unfavourable – those entering the labour market and older people, with low professional qualifica−
tions, as well as persons with some disabilities. The absence of satisfactory conditions for a start in life,
first of all for the young generation has recently been leading to a considerable migration of people
in search of education and jobs abroad, and the loss of job by older persons and remaining jobless over
a longer time causes remaining passive professionally.

59
 A basic condition for increasing employment and reducing unemployment – apart from making use
of conditions for demand for work and improving the standard of labour supply, would include rationali−
sation of the labour market which supports the dynamics of flows from the unemployment state to a job,
from inactivity to employment, from school to work – pursuant to Guideline 1.3.1 Attract and retain more
people in employment and modernise social protection systems defined in CSG. Increasing the share of
employed persons in the total productive age population, inter alia with support of implementation of
the labour market active policy, will be an indispensable component of the development strategy in
the perspective of the few oncoming years, which will contribute to delivery of Guideline 17 Imple−
ment employment policies aiming at achieving full employment, improving quality and productivity
at work, and strengthening social and territorial cohesion. A determinant role in this scope would be
played by labour market institutions, social welfare, which should be efficient, and which should be
capable of quick and effective responding to challenges connected with economic and social
restructuring. For this reason the measures should be based on supporting and rationalisation
of labour market and social welfare institutions towards their effectiveness and to improve access
to benefits offered by those institutions and high quality services – adapted to the actual needs and
groups of beneficiaries.
The existence of effective institutions of the labour market and social welfare, which deliver the
labour market active policy, is indispensable to support provision of services to persons who are seeking
jobs, the unemployed, in the case of whom active labour market instruments in the first period of remain−
ing jobless offers the best opportunity for leaving behind their unemployment and professional passivity
for people whose activation tends as a rule to be a long lasting and costly process. It is also to guarantee
conditions that would facilitate to persons employed in agriculture and industries under restructuring
access to appropriate retraining and going over to other occupations and professions.
In the forthcoming years it will be necessary to make the labour market more flexible and to limit
enticements to professional deactivation. Elimination of aid forms and methods favourable to passivity
and helplessness and to the existence of the so−called ‘grey zone’ from the system must be accompa−
nied by establishment of a modern system of social insurance and full enhancing of professionalism of
the labour market institutions. Pursuant to guideline 20 Improve matching of labour market needs the
elementary measures shall refer not only to enhancing the staff standard through development of the
education system, but also the introduction of cooperation procedures between social welfare centres
and job offices and employers to enable enhancing of professional and educational activity of persons
who are beneficiaries of those institutions. An indispensable element of this strategy is to be a more
effective anticipation of changes that take place on the labour market. The continuous changes and
transformations impose on labour market and social welfare institutions the establishment of mecha−
nisms of effective anticipating and better change management, including economic restructuring.
The measures described above shall enable applying on the labour market means that include
early identification of needs, custom adapted services – assistance in job seeking, counselling and
training, provision of social services in support of access to employment, etc. (pursuant to Guideline 19
Ensure inclusive labour markets, enhance work attractiveness, and make work pay for job−seekers,
including disadvantaged people, and the inactive). All measures in this scope would be supported by
promoting and propagation of innovative and flexible forms of work organisation, including also tele−
work, which help handling and coping with professional commitments with family duties, development
of new work place sources, inter alia benefiting from social activity and entrepreneurship on the basis
of Guideline 21 Promote flexibility combined with employment security and reduce labour market seg−
mentation, having due regard to the role of the social partners.
Modernisation of social care systems and of the correct functioning of labour market systems
would be accompanied by promotion of new approached to work compliant with human life cycles.
Taking into account Polish problems on the labour market, delivery of Guideline 18 Promote a lifecycle

60
approach to work, is of particular importance, both in respect to creation of conditions that allow
enhancing professional activity, especially that of women, as well as low employment indicators
of older employees and youth.

Establishing conditions favourable to entrepreneurship

The vocational structure of the total employed population in Poland continues to diverge from
the same values in EU member states. In the past years an increase took place in employment in
the services sector at the cost of industry and agriculture, yet those transformations continue to be
one of the challenges that face the Polish labour market. The low share in official employment
is to some extent compensated by the “grey zone” which offers a relatively high number of jobs
to persons with low professional qualifications, for whom unregistered work is the only possibility
of obtaining some income.
Experience shows that one of the important delivery instruments of Guideline 1.3.1 Attract and
retain more people in employment and modernise social protection systems defined in CSG and active
policy of the labour market is the creation of new work posts through development of entrepreneurship
attitudes. This instrument is already being applied, albeit to an insufficient extent. The problem of unem−
ployment and of implementation of the most effective methods for its overcoming would be one of crucial
challenges in the development strategy.
In this scope the strategy would be related to educational measures and active policy of the labour
market. Its range would comprise a broad group of potential beneficiaries – from persons interested in
starting up their business operation and entrepreneurs to institutions that provide services and aid related
to entrepreneurship.
Supporting entrepreneurship would proceed by means of creation of a friendly environment for all
persons who intend to run their own business operation and support them in overcoming barriers that
hinder employment. Delivery of Guideline 21 Promote flexibility combined with employment security and
reduce labour market segmentation, having due regard to the role of the social partners within IG, would
be taking place in this scope in the preliminary stage – counselling, training, etc., to allow acquiring
knowledge and abilities necessary to establishing one’s own work place. Following this form of support,
assistance would also include financial support in the initial period of company operation.
Taking into account increased competitiveness and the appearance of new technologies, which
impose the need of adaptation both to the employees and enterprises, an integral element in creating
conditions favourable to entrepreneurship would be support for already existing projects. It includes
updating and improvement of qualifications and skills of the employees, as well as the establishment
of an effective training system for personnel in enterprises; furthermore the adaptation potential
of enterprises would be enhanced through support for new solutions related to work organisation and
forms of labour.
Providing support to institutions which grant loans to entrepreneurs and persons who intend
to commence their business activity, and which provide informatic and counselling services and run
training offer databases for needs of enterprises and persons starting up their business operation would
enable better access with offered services and support to enterprises.

Counteracting poverty and preventing social exclusion

In Poland the general increase in income and expenditures in the society is accompanied by inten−
sified income situation diversification of the population, with a continued trend of increasing poverty. The
differentiation of problems depends on the specific nature of the particular region. In agglomerations
and in major cities the problems of drug addicts, criminality and homelessness are intensified. On the
other hand in poorer rural regions recorded are pathological situations connected with absence of prospective

61
 jobs, especially for persons with a lower education level. A negative element is the phenomenon of poverty
passing over successive generations. In all milieus there is the problem of exclusion of persons with
considerable and severe disabilities. Another problem, arising because of cultural disparity of ethnical
minorities, is the professional and social alienation of the Roma people.
To reflect objectives of the Lisbon Strategy, in the forthcoming years measures would be delivered
which would be aimed at enhancing social cohesion. A basic element of such delivery is appropriate
ability of responding to social needs and elimination of factors favourable to intensification of disparities,
and as a consequence leading to professional passiveness, poverty and social exclusion. Projects aimed
at enhancing social integration are an element which fits first of all in Guideline 1.3.1 Attract and retain
more people in employment and modernise social protection systems stipulated in CSG. In this respect
the cohesion policy would be focused on persons in a disadvantageous situation resulting from a long
period with no professional activity and persons who have discontinued their school education. Appro−
priate support would also be provided to persons who are under special risk of social exclusion due to
their disability, cultural and ethnical differences.
Social integration and counteracting poverty and social exclusion would be taking place first of all
through assuring access to education and professional training. This would be accompanied by provid−
ing necessary social services in support of access to jobs for persons excluded from the labour market
and services that support preventing poverty, as well as promotion of local initiatives in support of jobs.
An indispensable part of this process is facilitating access to such spheres and areas, which in an
indirect way affect significantly the social integration process. An important element of the undertaken
measures shall be professional and social integration of immigrants and the Roma people – establish−
ment of institutional and financial framework for programmes that would allow immigrants and national
and ethnical minorities to overcome language, culture and ethnical barriers, as well as assistance
in support of persons with lasting unemployment, the homeless, persons with mental disorders, persons
discharged from penal institutes and youth leaving correctional institutions.

Improvement of the health potential of human capital

The diagnosis has shown that considerable disparities exist in Poland in the health state of the
inhabitants as compared to other EU countries, and as well as marked differentiation in particular
regions in access of the inhabitants to medical care. At present more than a half of the Polish population
are persons in the productive age. In contrast to EU countries the inhabitants of Poland are classified
as young in the demographic context. However, in the forthcoming years the age median shall be
increasing, while the growth of the number of older people and maintaining manpower in a state
of professional activity would become a challenge for the health care system.
In the context of the cohesion policy, in the forthcoming years one of the elementary tasks of the
planned strategy, pursuant to provisions of the Guideline 1.3.2 Improve adaptability of workers and
enterprises and the flexibility of the labour market and Guideline 1.3.5 Help maintain a healthy labour
force defined in CSG, would be introduction of measures aimed at providing better access to health care
and assuring a high standard and a single level regardless of the place where those services are to be
provided. This objective would be executed first of all thanks to training and improving abilities of the
medical staff. Concurrently planned are investments in health promotion and preventing diseases. The
above mentioned measures together with assured access to medical care services would enable early
diagnosing of risks, reducing the absenteeism level, and over a longer perspective extension of active
participation in the society, while improving the awareness of employees as regards the occupational
safety and hygiene shall be directly transposed to work productivity and competitiveness.

62
5.4.3. Establishment and modernisation of technical and social infrastructure crucial for better
competitiveness of Poland
A small number of important investments that could create new work posts is the main barrier that
impedes the economic development of Poland and its regions. The insufficient level of investments
results first of all from the lack of elementary technical and social infrastructure and in many cases an
unsatisfactory standard of its functioning. The lack of modern technical infrastructure affects adversely
the volume of economic exchange, decreases the mobility of inhabitants, and is also the main barrier
that hinders further development of industry and services. Poland must in the shortest possible time
possible establish an efficient system of transport links both inland and with the remaining part of Europe
to enable full utilisation of the existing economic, social and territorial potential, and in addition to allow
establishing conditions favourable to creation of modern and competitive economy. Delivery of invest−
ments concerning elementary technical infrastructure is a necessary condition for achievement of objec−
tives set up by the Lisbon Strategy, as well as NSRF objectives, which determine the success of meas−
ures directed at the development of human resources and increase in economic innovativeness.
Furthermore, it maintains coherence with CSG guidelines which assume making Europe and its regions
a place more attractive for investments and work, or IG stipulating the necessity of expanding,
modernising and linking infrastructure in Europe, the necessity of completing priority transborder projects
and the necessity of supporting balanced utilisation of resources and enhancing the synergy effects
between environment protection and economic growth.
Linking the main economic centres in Poland by a system of highways and expressways and by
modern railway systems, and assuring transport links in European links (within the TEN−T system)
A diagnosis of the situation in the transport sector shows that Poland has a dense transport net−
work, yet due to its decapitalisation and its low standard it constitutes a fundamental barrier to economic
growth of Poland and its particular regions, and limits investment possibilities in the sector of enterprises.
One of the most important problems that significantly affect growth opportunities for competitive−
ness of the Polish economy is the lack of a coherent network of highways, fast traffic roads and appro−
priate standard of railway systems joining major economic centres of Poland. The absence of links
in those relations leads to a reduction in possibilities for locating investments in certain regions, which
is also an important hindrance for full utilisation of the growth potential of particular metropolises for the
economic growth and creation of work posts. It also significantly affects the diffusion of product diffusions
and limits costs of economic operation in certain sectors.
The second problem related with the functioning standard of the transport network is the lack of
appropriate standards of links between Poland and neighbouring countries, including also sea borders.
This poses a serious obstacle to companies that run their operation in Poland and in other countries in
their usage of the single European market; in addition, as a result Poland does not use its geographic
situation, and looses in favour of its neighbours advantages that result from potential transit of goods
through the territory both in the east−west direction (EU countries – Russia, Ukraine, Belarus), as well as
north−south (Scandinavian countries and the Baltic region countries – central and southern part of Europe).
The poor state of infrastructure, in particular with respect to the roads (motorways and express−
ways), is transposed to a disastrous situation in road traffic safety – Poland is a country with the highest
percentage of road accidents with fatalities in the entire EU.
Taking all the above into consideration, the NSRF strategy related to the transport sector would
be focused on assuring that transport related investments of regional, national and international rank led
to establishment of a coherent system that reflects directions of economic and social relations.
The planned measures will first of all assure having all the major Polish urban centres linked by
a system of motorways and expressways and by fast railway connections by 2013. This network is to
cover all the main urban centres in eastern Poland to improve their development possibilities and
to hasten the process of restructuring indispensable on those areas.

63
 Also of importance would be to assure transport links within the TEN system which would connect
Poland to the European transport system. It is particularly necessary to assure links between Western
Europe and the Baltic countries, as well as Ukraine, Belarus and Russia, and also between the Scandi−
navian and Baltic region countries and countries of Central and Southern Europe.
A supplementing measure with respect to development of the system of motorways and expressways
will be modernisation of other national roads, which join minor economic centres into the basic national
system. Measures in this respect shall be focused on such a modernisation of the existing road system,
assuring concurrently appropriate load carrying properties pursuant to requirements of the Accession Treaty
and construction of by−pass roads and elimination of bottlenecks in the national road infrastructure.
Development of transport links of an appropriate standard would help improve road traffic safety,
however, ancillary measures would be necessary to improve safety on the Polish roads and in a broader
scope in the entire Polish transport system, such as educational campaigns, equipping the police and
rescue services with necessary gear etc.
Apart from development of appropriate standard railway links between the main Polish economic
centres, in the context of assuring appropriate service standard and limiting consequences of potential
railway accidents, indispensable are investments aimed at improvement of the condition of passenger
railway rolling stock and investments in selected elements of railway infrastructure.
As was shown by the diagnosis, cargo transport is being implemented to an excessive extent by
road transport, mainly due to the bad state of intermodal traffic. Consequently investments in infrastructure
of intermodal transport would be promoted, and those introducing informatic and communication
systems, which enable utilisation of modern technologies in the field of transport. Such measures would
help relieve road traffic load, which in conditions of quickly growing foreign trade turnover would be
unable to carry the increased traffic flows, and in addition they would help limit road traffic pressure on
the natural environment.
The dynamic development of the major urban centres and the recent leap like increase in the
number of mechanical vehicles impose the necessity of a more complex approach to issues of public
transport. This would be favourable to intensification of competitiveness in those centres through assur−
ing quick and safe transport means for employees and inhabitants covering the area of the entire
agglomeration (major cities with the adjacent areas of entire agglomerations). Measures in this scope
would also have noticeable effects on the environment – limiting exhaust gas emissions, and conse−
quently an impact on health – they would clearly improve the living standard in major towns. Support
would be granted to complex projects aimed at solving transport problems of the agglomeration, based
on the stipulation of limiting road traffic in town centres and introduction of ‘clean’ municipal transport
means such as underground or the tramway.
A particularly important transport branch that allows easy and quick access to major municipal
centres in Poland and abroad is air transport, which in the past years has acquired special importance.
The currently existing infrastructure of airports is not adapted to continuously growing air traffic, and
forecasts that anticipate a significant growth in the share of air transport in total transport value indicate
directly the necessity of investments in this transport sector. There is a need for development and
modernisation of airport infrastructure, which concerns both the biggest ones, as well as regional ones
that enhance investment attraction of minor centres.
The development and modernisation of port infrastructure in the major sea ports and sea highways
is of great importance not only for competitiveness of sea transport, which may be an optional form
of transport to road and railway transport, but would additionally have impact on improvement of com−
petitiveness of coastal region towns as places of concentration of certain types of economic operation
and transit and logistic points of many types and for services. The development of inland navigation is of
importance owing to its ecological nature, and so there would be a need for investments of a reconstruction
character aimed at impeding the regression in inland navigation.

64
 Measures aimed at establishing and modernisation of the technical infrastructure are coherent with
CSG Guideline 1.1.1. Expand and improve of transport infrastructures and Guideline 16 To expand,
improve and link up European infrastructure and complete priority cross−border projects specified in IG.

Increasing the share of public transport in services to inhabitants

Car transport still remains the leading means of municipal transport in Poland that the neglected
and insufficient road infrastructure is unable to cope with. This leads to increased negative pressure on
the natural environment and transport insufficiency of major cities, and consequently their attractiveness
tends to decrease. The poorly developed infrastructure of public transport causes that the presented of
inhabitants making use of it remains unsatisfactory. To limit to the greatest possible extent the pressure
of car transport on the natural environment, and to improve the transport capacity of towns it is neces−
sary to undertake measures aimed at development of environmentally balanced transport systems, inter
alia through introduction of integrated systems of road traffic management, creation of integrated trans−
port centres and integrated development plans for municipal transport, as well as support for mass rail
transport (metro, quick urban railway). Of particular importance is also enhancing the safety in public
transport by supporting the use of ITS (intelligent transport systems) in the scope of transport infrastruc−
ture and improvement of safety management systems. Those measures would contribute to develop−
ment of environmentally balanced transport networks, pursuant to guidelines contained in IG Expand
and improve European infrastructure and CSG 1.1.1 Expand and improve of transport infrastructure,
and in addition would allow changing proportions between transport means in favour of those more
environment friendly, such as for example public mass transport, bicycles or pedestrian traffic.

Assuring and developing environment protection infrastructure

Apart from transport infrastructure, for functioning and development of the Polish economy crucial
is environment protection infrastructure and ecological safety. EU documents, both IG – Guideline 11
To encourage the sustainable use of resources and strengthen the synergies between environmental
protection and growth, as well as CSG – Guideline 1.1.2 Strengthen the synergies between environ−
ment protection and growth give priority to issues connected with environment protection. The develop−
ment and modernisation of environment protection infrastructure stimulates innovativeness and crea−
tion of new work places, reduces external environmental costs for the economy through limiting costs of
treatment, elimination of negative consequences, health care, and what is more allows achieving
a stable economic growth. It plays additionally a fundamental role in improving the living standard and
success of restructuring processes on rural and post−industrial areas. As was shown by the diagnosis,
the negative pressure on the natural environment in Poland keeps systematically decreasing. At the
same time when Poland became a member state of EU it obliged itself to execute EU Regulation inter
alia from the scope of environment protection, or establishment of NATURA 2000 European Ecological
System. To be able to fulfil undertaken commitments, as well as to assure a lasting and sustainable
economic growth, measures related to the environment sector should focus inter alia on supporting
projects aimed at assuring efficient and effective systems of disposal and treatment of sewage. Support
should also be assured to measures aimed at reducing the percentage of dumped municipal wastes and
recultivation of degraded areas, which simultaneously lead to implementation of the Community law34.

34
Directive 91/271/CEE dated 21 May 1991 concerning treatment of municipal sewage (Official Journal EU L 135 dated 30 May 1991), Directive
76/464/CEE dated 4 May 1976 concerning pollution caused by some dangerous substances disposed of to the water environment (Official
Journal EU L 129 dated 18 May 1976), Directive 2000/60/CE dated 23 October 2000 setting up framework for Community measures for water
resources management policy (Official Journal EU L 327 dated 22 December 2000 r.), Directive 99/31/CE dated 26 April 1999 concerning
wastes dumping (Official Journal EU L 182 dated 16 July 1999), Directive 75/442/CEE dated 15 July 1975 concerning wastes (Official Journal
EU L 194 dated 25 July 1975), Directive 91/689/ CEE dated 12 December 1991 concerning dangerous wastes (Official Journal EU L 377 dated
31 December 1991), Directive 94/62/CE dated 20 December 1994 concerning packaging and packaging wastes (Official Journal EU L 365
dated 31 December 1994), Directive 2000/76/CE dated 4 December 2000 concerning wastes burning (Official Journal EU L 332 dated
28 December 2000).

65
 Furthermore, measures should be focused on assuring appropriate volume of water resources for needs
of the population and national economy and counteracting serious breakdowns, as well as minimising
consequences of negative natural phenomena.
Civilisation related and economic growth causes that resources of biological diversity and land−
scape values that form the natural heritage of Poland are exposed to progressing degradation. Natural
environment has a direct influence both on human health and also on various branches of the economy.
For this reason it is necessary to limit degradation of the natural environment and losses in resources
of biological variety by enhancing the ecological awareness of the society, regaining appropriate state
of natural habitats, supporting development processes for protected areas protection plans, or regaining
continuity of ecological corridors. Such measures are coherent with State Ecological Policy, Convention
of Biological Diversity, and also allow correct functioning of the NATURA 2000 system and would conse−
quently contribute to implementation of Community Regulations35.
Measures implemented within NSRF will be undertaken keeping in mind provisions concerning
climate changes, including reduction in emission of greenhouse gases to the atmosphere defined by the
EU within a long−term horizon. The impact of investments executed within NSRF on climate changes
and increased level of greenhouse gases emission in Poland would be subject to periodical observation
within monitoring and evaluation of implementation of NSRF and operational programmes with the use
of technical assistance means. This is of importance especially in the light of intensified pressure on
emission of greenhouse gases connected with hastened rate of economic growth and intensity of planned
infrastructure related investments in Poland.

Diversification of energy sources and limiting negative pressure of the energy industry on natural
environment
The quickly growing demand for energy, with ageing manufacturing, transmission and distribution
assets, may as a consequence lead to deterioration of the energy safety and decreasing the infallibility
of energy supplies for users. The recent geopolitical situation, trends of growing prices for crude oil and
gas, breakdowns of electric power systems in Europe, USA and Southern America constitute a basis for
taking up the problem of energy safety. This fact had been reflected inter alia in European Union docu−
ments concerning on the one hand establishing a European strategy of the energy safety system itself,
and on the other hand, supplies of strategic energy carriers.
From the viewpoint of economic growth and improving the national competitiveness it is also of
particular importance to assure energy safety, comprehended as diversification of energy supply sources,
as well as improvement of infallibility of the available infrastructure. As was shown by the sectoral
diagnosis, the national energy infrastructure is outdated and seriously underinvested, and the main
sources of energy are non−renewable sources.
Furthermore due to the transmission structure of energy carriers (crude oil and natural gas) their
supplies are concentrated on a single direction, thus creating a real threat to guaranteed energy
supplies, indispensable for long−lasting economic growth. Another problem is the continuously unsat−
isfactory degree of integration of the electric power transmission system with systems in other EU
countries.
Consequently it is especially important to initiate the process of creating new transmission and
transport capacities for electric power, natural gas and crude oil from diversified supply directions, as
well as commencement of measures aimed at improving warehousing capacities. Such measures con−
tribute to improvement of energy safety both for Poland, as well as for the entire Community. In those
cases in which market mechanisms would prove to be insufficient for achieving appropriate diversification

35
Directive 79/409/ CEE dated 2 April 1979 concerning protection of wild birds (Official Journal EU L 103 dated 25 April 1979), Directive 92/43/ CEE
dated 21 May 1992 concerning protection of natural habitats and wild fauna and flora (Official Journal EU L 206 dated 22 July 1992).

66
of supplies, support would also concern investments in the transmission and distribution systems
of traditional energy sources, including electric energy, natural gas and crude oil.
The absence of gas distribution infrastructure in 37.6 % of all communes [gminas] in Poland is an
additional cause for the occurrence of disparities in the national economic development. In the current
market situation investments in the distribution and transmission energy system and for warehouses
destined for natural gas fail to guarantee sufficiently quick return of borne outlays.
To assure national energy safety of particular importance is first of all the diversification of traditional
energy sources and energy carriers, as well as gradual increasing of the share of renewable energy
sources.
The specific nature of the Polish energy sector, which has been based to a large degree on hard
coal, and the anticipated economic growth in the perspective of the forthcoming years impose the
necessity of undertaking measures connected with limiting the adverse impact of the sector on the
environment, resulting from production, transmission and distribution of energy and fuels.
This is connected with the necessity of introducing new solutions and technologies, first of all
limiting pollution created at the source. Also important is implementation of measures aimed at increasing
the effectiveness in the use of primary and final energy, both in energy production processes, in its
transmission and distribution, as well as in the process of its use.
Furthermore, as regards assuring a balanced and safe supply system of fuels and energy in the
context of reducing pollution emission, also of importance would be measures aimed at changing the
structure of used fuels and increasing efficiency of the use of available installations and equipment.
Hence within the energy industry measures should be focused on expanding the use of renewable
energy sources, and consequently reducing the emission of greenhouse gas to the atmosphere.
Taking into account directions of the European energy policy set out during the Council of Europe
summit on 8 and 9 March 2007, measures related to energy industry will focus on investments with high
added value to achieve objectives set out during this summit. Special support in this scope would be
granted to those investments which are likely to contribute to enhancing energy safety, technological
innovativeness in energy industry and intensified use of renewable energy sources and better energy
effectiveness.
By supporting the development of the renewable energy policy, based on inland potential, it is
assumed that in 2013 Poland will achieve the share of energy coming from renewable sources in the
balance of primary energy at the level of 7.5 %.
The implementation of the above described measures will improve energy safety through diversifi−
cation of energy supplies, and guarantee reduced dependence of Europe on fossil fuels. In addition
it will allow benefits as regards reduced emission of greenhouse gas to the atmosphere, enhancing
EU superiority in industries related to production of electric power from renewable sources and better
economic and social perspectives.
Investments in those scopes implement the objective of the Lisbon Strategy, and in addition
contributing to implementation of the Community law36.
The above indicated measures are coherent with guidelines included in CSG – Guideline 1.1.3
Address Europe’s intensive use of traditional energy sources, which points to the necessity of decreas−
ing by member states the use of traditional energy sources through increasing the share of renewable
energy sources in the energy balance, and improvement of energy effectiveness. Pursuant to this guideline
in cases in which market mechanisms would be insufficient to enable achievement of appropriate

36
Directive 2006/32/CE dated 5 April 2006 concerning effectiveness of final use of energy and energy services, and final use of energy and energy
related services, and repealing Council Directive 93/76/CEE (Official Journal EU. L. 114 dated 27 April 2006), Directive 2004/67/CE dated 26 April
2004 concerning means that assure safety of natural gas supplies (Official Journal EU. L. 127 dated 29 April 2004).

67
 diversification of supplies, support would also concern investments to be made in the transmission and
distribution systems of traditional energy sources, including natural gas and crude oil.

Support for elementary social infrastructure

The Polish economy is characterised on the one hand by a significant development potential, and
on the other hand several developmental lagging behind which result inter alia from the absence of
technical and social infrastructure. To improve the living standard of the inhabitants of Poland, as well as
to allow hastening of social and economic development, it is of particular import to assure a more
homogenous access to elementary social infrastructure, as well as expansion of those elements,
which are directly connected with performance indicators of NSRF objectives. This includes raising
the education level, increasing the number of graduates on technical and natural science faculties,
improving the health state of the employees and prolongation of their lives, as well as improving the
living standard among others through improving access to culture facilities and also promotion
of tourism and recreation.
Access to healthy and highly qualified labour resources is an important premise of broadly under−
stood investment attractiveness and has a direct impact on functioning of the entire economy. Taking
into consideration the demographic and social structure, as well as differentiation in access to infrastruc−
ture of health protection, culture, education or tourism, as well as guidelines of CSG – Guideline 1.3.5
Help maintain a healthy labour force, which assumes enhancing social and economic coherence of the
member states, significant are investments aimed at reducing disparities in access to infrastructure of
health protection, culture, education or tourism. Investments in social infrastructure, treated in a comple−
mentary way as compared to the technical sphere, are expected to contribute to enhancing interrela−
tions between particular sectors, and consequently maximising of the assumed developmental effects.
Health of the population is one of key factors related to productivity and economic growth, and an
essential determinant of the generally understood living quality. As regards the health protection infra−
structure, important are measures oriented at improving health protection infrastructure, reducing dis−
parities in access to medical infrastructure and enhancing effectiveness in the health care systems
through investments made in ICT, knowledge and innovations. Support for health care infrastructure
may be a source of added value in other areas of economic life. More effective health policies should be
advantageous also to limiting the phenomenon of employee absenteeism, as well as early retirement.
Taking into account the effectiveness of teaching as the main factor that determined the functioning
of modern economy based on knowledge and innovations, it is necessary to increase the availability of
education through establishment and modernisation of infrastructure, and in particular through the
development and expansion of research and scientific facilities and teaching units, as well as furnishing
them with scientific and research equipment, including laboratories, computer rooms, libraries, and con−
struction and modernisation of infrastructure in universities. A better education system would improve
professional qualifications and adaptation abilities of employees, and consequently allow involving
a bigger number of persons in active professional operation.
Measures in the field of infrastructure for culture and protection of cultural heritage are oriented first
of all increasing access to culture of the inhabitants of Poland and enhancing cultural competencies of
the society, as well as tourist and investment attractiveness of Poland. Those measures would be
focused on utilisation of the already existing potential of cultural heritage of a global and European
importance, protection and preservation of cultural heritage, improvement of the culture infrastructure
state and development of new optional forms of using of culture.
In addition the existing culture potential (including European cultural routes that run through
Poland) and the potential of nature, and measures planned in the field of culture create favourable
conditions for development of tourism infrastructure. To assure access to an appropriate, high quality of
tourist services and to enable enhancing tourist attractiveness of Poland and its regions the planned

68
measures would be focused first of all on improvement of the quality of available tourist infrastructure by
means of projects related to its development, modernisation and equipping. Projects in this scope would
also be directed at creation of new facilities to be used in running tourist operation, which would conform
to binding EU standards. Work places in the sector of tourism contribute to a growth of employment in
the infrastructure in the sector of tourism would contribute to an increase of employment in the infra−
structure accompanying production of goods and services which are indispensable for services to be
provided to tourists. Support related to tourism would concern both projects that fulfil criteria of the social
infrastructure – used free of charge by the whole society, as well as on commercial principles, which are
an element of state aid schemes.

5.4.4. Improving the competitiveness and innovativeness of enterprises, including in particular the
manufacturing sector with high added value and development of the services sector
Diagnosis of the situation in the present sector of the Polish economy, despite a growing share
of technologically advanced products in the structure of export and high entrepreneurship potential,
indicates its very low innovativeness37. Meanwhile a determination ability of economies of contemporary
states and regions to maintaining competitiveness over a long−term perspective is the ability of creating
and absorbing innovations.
To achieve high dynamics of economic growth to be maintained over a longer period and to create
conditions for establishing a knowledge based economy, measures would be delivered which have
been defined in initiatives undertaken both on the national level and the EU level. Those measures are
coherent with the renewed Lisbon Strategy and the directions specified in it of measures related
to entrepreneurship and innovativeness, CSG, IG, as well as provisions of the Seventh Framework
Programme for Research and Technological Development, Competitiveness and Innovation Frame−
work Programme (CIP) 2007−2013, the European Commission’s Green Book on Entrepreneurship
in Europe and initiative “eEurope 2005: Information Society for All” and strategy „i2010” – A European
Information Society for growth and employment”. Measures aimed at achievement of the intended
objective would be directly contributing to implementation of two components of the strategic objective,
and namely: establishment of conditions for growth of competitiveness of the economy based on knowledge
and entrepreneurship and maintaining the employment growth.
The economic growth of Poland would depend on assuring competitive advantage to provide lasting
development, resulting from making use to a larger extent of knowledge innovative solutions. This would
be achieved through implementation of a policy that stimulates development based on innovations,
thanks to measures oriented at supporting of sectors, which are carriers of knowledge based economy
and increasing expenditures of public institutions on research and development, which have direct trans−
position on the sphere of economic operation, and stimulation of growth in investment made on
research and development in enterprises, as well as investments in the scope of innovative solutions,
both technological and organisational ones. Improvement of innovativeness in the economy requires
the development of various support instruments, in a broader scope for SMEs, especially those in the
initial growth stages, as well as for enterprises that introduce the latest technological solutions of consid−
erable importance for the economy.
Support within the production sector will be first of all given to SMEs, for which at least
75 % of the total allocation from sectoral and regional operational programmes will be assigned.
Support for major investment projects in the production sector will be granted first of all taking into
account evaluation of the innovativeness degree of the proposed investment, and as such would not be

37
Innovativeness means the ability and motivation of enterprises to continuous seeking and utilisation in practice results of research and development
works, new concepts, ideas and innovations. Innovativeness also means improvement and development of the existing production, exploitation
technologies and those related to the sphere of services, introduction of new solutions in organisation and management, improvement and
development of infrastructure, especially related to collecting, processing and granting access to information.

69
 considered as enticement for companies that transfer production operation to Poland from other EU
member states. Companies interested only in relocation without a change in production profile have
mainly the intention of reducing their expenditures by limiting costs of staff employment.
Innovativeness is playing a fundamental role not only in relation to competition of products and
services (both on the inland and international markets), but also helps improve the level and quality of
life of the inhabitants. Measures in support of development of enterprises on a regional level will be
enhanced by implementation of innovative measures, resulting from Regional Innovative Strategies
(RIS), which contribute to regional and local development and to creation of new work places. Projects
directed at generating innovative solutions in enterprises will be co−financed in a complementary way on
a central level. As an effect competitive predominance will in an increasing extent be shaped by techno−
logical innovations and to a decreasing extent by price competition.
Measures directly addressed at increasing innovativeness in enterprises should be supplemented
by establishing favourable conditions for their development by supporting business environment institu−
tions, which would allow an improvement in accessibility of supporting services for entrepreneurship
and innovations, as well as placing emphasis on the increase of cooperation of the enterprises sector
with science and directing research on their application in the economy. To strengthen the potential of
enterprises and to enhance cooperation between them it will be necessary to implement measures
related to establishment and development of cooperative ties between entrepreneurs, and between
entrepreneurs and business environment institutions, including also scientific institutes. Those meas−
ures would be favourable to creating, transferring and diffusion of new solutions, and consequently
contributes to improving competitiveness and innovativeness of enterprises.
Instruments implemented on the national level are complementary with initiatives undertaken on
a regional level, where the main focus would be on direct support, especially for SMEs which implement
projects of a relatively lower value and business environment institutions of a local and regional range
which are operating in support of entrepreneurship development.
Differences between Poland and countries of the European Union with respect to informatisation
affect adversely the competitiveness of the Polish economy and the life quality of its inhabitants. It is
necessary to implement complex measures aimed at the establishment of electronic public services for
the citizens and for enterprises, which would be mad possible by reconstruction of the public administra−
tion base and establishment of fully integrated electronic services. This would facilitate providing public
services by electronic mail in fields of key importance for economic operation, such as for example fiscal
settlements, customs, administrative charges etc.
The application of integrated solutions based on ICT technologies will facilitate running economic
operation. Promotional campaigns lead to wider utilisation of ICT techniques in the private and public
sectors. They will assure better availability of information resources and services in an electronic form
for enterprises and households.

Supporting manufacturing activity that enables achieving high added value

Assistance granted to entrepreneurs within NSRF must assure lasting enhancing of the competi−
tive strength of the Polish economy. One of the support areas, which determines possibilities of assuring
a constant economic growth and increased work productivity, are new investments in the sector of
industry. Having at its disposal a great manpower, with quite good qualifications, including also execu−
tive level staff, the Polish economy needs new investments in those areas of manufacturing, which by
creating new work places will be first of all increasing the inflow and application of new technologies
production of competitive products on global markets, and which will allow the Polish companies to join
cooperation chains of global leaders in the sphere of various types of production (from electronics,
informatics, household appliances, through the automotive sector to modern applications in biotechnology)
and allowed the development of productive potential of the most innovative small and medium

70
enterprises. As a consequence such focusing of support should lead to increased export of industrial
products, increased share of high technology products in industrial production.
Promoting entrepreneurship through stimulation and development of innovative economic opera−
tion implements provisions of Guideline 1.2.2 CSG: Facilitate innovation and promote entrepreneurship.
It is also reflected in Guideline 10 contained in IG: To strengthen the competitive advantages of its
industrial base.
The development and establishment of new enterprises is a basis for the establishment in the
economy of new, lasting and attractive work places. Activation of entrepreneurship, first of all based on
innovations, would directly comprise investment, counselling and training support for development of
the existing enterprises and establishment of new enterprises, including supporting initiatives that orig−
inate in academic centres and research institutes. Support in the production sector would be aimed first
of all facilitating the introduction of modern high technology solutions and manufacturing of innovative
products. Those measures would contribute to generating demand for a bigger number of innovative
solutions, stimulating at the same time adaptation of the offer of the research and scientific sector and
increase in outlays of enterprises on innovative operation, through which the share of sectors with high
added value in GDP would be increased. Measures which are to be used for development of enterprises
would lead to an increase of their productivity through introduction of improvements in the present produc−
tion processes and producing by them more competitive products. Support for entrepreneurs concerns the
added value in the economy by raising abilities to absorbing new technologies and establishment of new
markets, which would be transposed on the ability of entire country to absorbing technologies.
Measures in support of enterprises directed at the development of innovativeness, which are
implemented on a regional level, will be focused on enhancing the investment potential of small and
medium enterprises, with particular emphasis of microenterprises. Apart from investment, counselling
and training assistance addressed at enterprises, also complex support will be offered for establishment
of new companies (the so−called start−up), especially in areas that are important for development
of a given region, and additionally cooperation between companies on a regional level will be promoted
(support for establishment and development of cooperative ties of entrepreneurs, including clusters
of a regional range).
Measures implemented on a national level, which supplement regional measures, will be directed
at support of innovative projects, both related to products and to organisation. Development of compet−
itive economy on an European and global scale will be possible thanks to implementation of a catalogue
of complementary projects in support of initiating innovative operation, to a large extent in SMEs (among
others financing the execution of research and development works and implementation of their results,
establishment of cooperative ties, management of copyright and industrial property rights, development
of e−services, including of the business to business type, specialist counselling and training support).

Development of service sector

An effective service sector may be treated as one of the factors that exerts a positive impact on the
development of Polish economy. Taking into account features of the Polish economy and further
increasing of its openness in a medium−term horizon, continued development of the service sector would
be important for the development of Poland and for increasing of the employment level. The planned
support would concern both the sector of market services, including in particular the sector of tourism
and culture and medical services, as well as those elementary services that may affect processes
of regional development and improving accessibility to services on marginalised areas. For generating
a considerable number of work places for highly qualified manpower it will be important to assure sup−
port of enterprises which provide pro−growth services connected with financial services, bookkeeping,
or teleinformatic services, as well as professional services that offer support in the field of management,
marketing, or recruitment of employees. Development would comprise service enterprises making use

71
 of product, process and organisation innovations. The role of tourism as generator of new work places
may be dominating especially on border regions and areas affected by structural unemployment. Work
places in the tourism sector would contribute to employment growth in infrastructure that accompanies
production of goods and services indispensable for tourist services. Measures aimed at development of
an efficient internal service market are coherent with priority 1.2 CSG: Improving knowledge and innovation
for growth and Guideline 12 To extend and deepen the internal market included in the framework of IG.

Improvement of functioning of enterprises and their access to external financing

The diagnosis of the situation of Poland as regards institutions that provide support for enterprises
has shown that despite functioning of a considerable number of such institutions their spacing is not
even, and the offer is not always suitably adapted to needs of enterprises.
The regulation environment of the sector of enterprises is unstable and creates unfriendly condi−
tions for running business operation, and poses several administrative and legal barriers – especially in
fiscal regulations. Partial limitation of those adverse factors for the development of entrepreneurship
should be enabled by way of establishment of a cohesive business environment system appropriate for
needs of entrepreneurs.
To promote entrepreneurship and shape enterprising attitudes appropriate instruments would be
developed to allow establishment of a friendly institutional, capital and legal environment to enable the
development of the existing and creation of new enterprises, especially SMEs, which create the biggest
number of new work places. Measures in this scope are delivered by provisions of CSG: Guideline 1.2.2
Facilitate innovation and promote entrepreneurship and Guideline 1.2.4 Improve access to finance.
They are coherent with Guidelines presented in IG: Guideline 8 To facilitate all forms of innovation,
Guideline 15 To promote a more enterpreuneurial culture and create a supportive environment for SMEs
and Guideline 14 To create a more competitive business environment and encourage private initiative
through better regulation.
Through the establishment and development of infrastructure for pro−innovative business environ−
ment, including centres that initiate innovative projects (industrial parks, scientific and technological
parks, technology transfer centres, technology and innovation incubators, technology accelerators),
high quality hinterland for functioning and development of innovative enterprises will be strengthened.
This system would comprise capital support in initial phases of project development (mainly SMEs) with
high growth dynamics, which have difficulties in obtaining external financing through increasing the high
risk capital and through involvement of private capital (network of ‘business angels’).
On the central level conditions will be established for internationalisation of enterprises, setting up
of cooperation with trade and production partners, financing new economic concepts. Promotion will be
directed at cooperation between institutions of a national importance, including support for institutions
that cooperate with each other with respect to development and provision of services that contribute to
better competitiveness of enterprises and development of innovative activity. Those institutions will be
conducting measures aimed at stimulation of new economic projects, including those highly innovative,
through development of cooperative ties between enterprises, establishment of clusters around major
enterprises, technological networks with research institutes and production chains of SMEs and major
enterprises.
On the regional level the creation and development of loan and security funds will be stimulated,
which are a financing source complementary to bank credits. Instruments directed at launching and
development of cooperation between enterprises and research and financial institutions of a local and
regional range will be implemented. Support will comprise the establishment and development of
regional innovation networks, entrepreneurship incubators and industrial parks, pursuant to needs that
arise from regional strategies. This will form a convenient environment for economic operation and
exchange of experience between enterprises.

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Development of information society
As is shown by the SWOT analysis, the position of Poland in the EU and in the increasingly globalised
world market will in the nearest future depend to an ever increasing extent on the rate at which the information
society would be developing. This issue should be perceived in a complex way – both in relation to the problem
of increasing access to information, such as public information for enterprises, public administration,
research units and particular citizens, as well as managing information, including using digital technolo−
gies to enhance the human capital quality, access and quality of public services, competitive effective−
ness of the operation of enterprises on local, national and international markets. In the situation
of Poland particular importance is acquired by digitising of access to public services and information
provided by public administration authorities to citizens and enterprises, provided by enterprises to each
other and those provided by enterprises to citizens. Implementation of modern information and commu−
nication technologies will create possibilities for considerable optimisation in functioning of enterprises
and would be directly transposed on enhancing competitiveness and innovativeness of the economy.
The development of information society in Poland will be possible thanks to implementation
of a complex strategy for development of information society, which assumes assuring access to the
Internet all over Poland (both as regards public institutions and individual users), and universal applica−
tion of information and communication techniques in public institutions and in business.
The establishment of the broadband Internet infrastructure with application of modern data trans−
mission technologies will assure a high level of access to the internet, especially on areas excluded
digitally, and will hence allow Poland to approach EU levels. This will lead to development of new
technologies in the sphere of telecommunication networks, increasing the data transmission rate, its
safety and reduce unreliability. Furthermore, the application of ICT technologies will allow the deploy−
ment of innovative solutions related to products, processes (services) and organisation in manufactur−
ing and service sectors. Increased use of new and innovative solutions in business and among consum−
ers will create better possibilities for dynamic development of the economy. The ICT technologies will also
be used in a universal way in public administration. This will help establish an interactive environment
between the public sphere and business entities, and will open convenient conditions for functioning
of enterprises. The introduction of information and communication technologies to the sphere of public
administration will facilitate and hasten the flow of information between various administrative levels and
their customers (corporate clients and individuals), which would not only improve the effectiveness
of operation of those structures but also expand the accessibility of elementary public services, including in
such priority areas as finance, justice administration, education, health, culture etc.
Improved access to the Internet and wider application of digital techniques in administration and
business would have a positive impact on possibilities of human capital increasing, among others through
e−learning, e−education, but also though the development of possibilities of gaining and exchange
of information, and also self−education. This will be of fundamental importance for enhancing spatial and
professional mobility of the society, and will consequently play an important role in assuring appropriate
quality of staff for increasingly competitive enterprises in an economy that is becoming increasingly
globalised in character, as well as in regional development processes, including employment restructuring
on such problem areas, as concentration areas of traditional industries or rural areas.
This objective is associated with Guideline No. 1.2.3 of CSG: Promote the information society for
all and Guideline No. 9 IG: To facilitate the spread and effective use of ICT and build a fully inclusive
information society.
To a large extent the development strategy of the information society will be implemented through
measures on a central level, addressed at enterprises, administration and the entire society.
Bigger projects in enterprises of a transnational nature will use means on a central level. On the
national level complementary analytical and research projects, promotional projects as well as projects
related to training and counselling will be implemented within e−learning. Support of the teaching proves

73
 will be executed also by application of ICT in education, as an element of development projects related
to universities with exact and technical profiles. On the national level also to be concentrated are complex
measures aimed at limiting the phenomenon of digital exclusion, oriented at assuring equal access
to the Internet on the entire area of Poland.
A requisite necessary to assure development of an information society will be modernisation
of public services provided to entrepreneurs and citizens. This requires on the one hand support for
informatisation of administrative structures, and on the other hand improvement in the quality and ac−
cessibility of the public service offer. The main support for this process will be taking place through
electronic projects for government administration services (electronic platforms for business and for the
citizens, among others tax settlements, administrative charges, registration of business operation,
services for public procurement), co−financed on the national level. Measures connected with informati−
sation of the administration will include implementation of projects related among others to electronic
state registers, electronic document circulation, and electronic signature.
Measures on a regional level will be oriented at establishment of backbone local and regional
broadband networks connected to the broadband network on the central level and establishment
of public access points to the Internet to be used for more widespread use of electronic information.
In enterprises that run their operation on a local and regional level promotion will comprise better appli−
cation of integrated ICT solutions in services provided to for consumers (e−business, e−trade, telework)
and in the business−to−business (B2B) system.
On the regional level support would be granted to all kinds of electronic services provided by
territorial self−government bodies, projects aimed at improvement of services in health protection
(e−health), education (e−learning) and an integrated system of management assistance in territorial self−
government bodies.
Owing to development lagging, separate support will be addressed at five voivodships of the eastern
Poland through implementation of a complex transregional project of establishment a network of
broadband transmission access to the Internet with access points, and training aimed at improving the
degree of the Internet use among entities digitally excluded (citizens, SMEs, public bodies).

Increasing investments in research and development and creation of innovative solutions

Data presented in the diagnosis, related to financing the R&D sector in Poland indicate a very low
level of outlays, both public and private ones. This contributes to lowering the research potential of the
public R&D sector, which is unable to cope with requirements of the modern economy or compete
effectively on the international arena.
In the past years no positive changes have taken place in the structure of outlays for R&D
activity by types of research. For a longer time now the share of elementary studies in this structure
has been maintained on a high level, with a simultaneous fall of the share of applied studies and
development works.
Enterprises which are operating in Poland, especially SMEs, are not willing to execute research
and development operation or to implement its results owing to the excessively high risk related with it.
They do not consider this type of operation as strategic for their development, and do not wish to accept
the risk and costs connected with it.
Reversal of the unfavourable trend requires undertaking measures directed at increasing the use
of results of performed R&D works in enterprises, adapting capabilities of scientific units to satisfying
needs of a modern economy and creating supply of new solutions for the economy. Increasing outlays
on R&D, both from public and private resources acquires key importance. Public outlays should be
borne in a way that would stimulate increasing private outlays through investments made by companies
on R&D, which should enable hanging the negative structure of outlays on R&D in Poland (two thirds –
public institutions, one third – private sector).

74
 Establishment of a competitive Polish economy based on knowledge requires increasing the share
of science in the process of developing solutions which are to be applied in the economy. To counteract
further intensification of gap between economy and science, first of all measures aimed at increasing
public and private outlays on research and development works shall be undertaken, which would be
conducted both in research institutions and in enterprises. Directing support on introduction of central
and regional strategies the objectives of which are focused on increasing innovative potential of the
entire country is covered by provisions of CSG – Guideline 1.2.1 Increase and better target investment
in RTD. This objective is associated with IG: Guideline 7 To increase and improve investment in R&D,
in particular by private busuness and Guideline 8 To facilitate all forms of innovation.
Establishment of Poland’s innovative potential is going to be supported by coherent measures,
in the first place on the central level, focused on enhancing the competitiveness of the Polish science.
By directing scientific research on development oriented scientific spheres and disciplines, research
projects will be executed aimed at establishment of knowledge based economy. Using the foresight
method development strategies for particular regions and sectors of the economy will be worked out.
Within complementary measures launched in particular voivodships, research programmes would be
implemented pursuant to priorities that result from Regional Innovativeness Strategies and Regional Tech−
nological Foresight. Through co−financing of research projects on the central level in spheres of key impor−
tance for the national economic development implemented by young scientists and with participation
of scientists from abroad, cooperation between the R&D sphere and the economy would be expanded.
To improve the application of new solutions being a result of R&D works executed in research centres, in
addition support will be granted to deployment of results obtained in such research in the economy. Pop−
ularisation of those results would be supported by measures that assure protection of industrial property
rights. On the other hand, direct support for innovativeness in enterprises is going to be implemented
through support for implementation of R&D studies for needs of enterprises by themselves or in a research
centre. This will help increase significantly the number of deployments of R&D in the economy.
Development of competitiveness of the Polish science will be achieved through modernisation
of research centres and expansion of cooperation between them. On the national level a consolidation
will take place of research centres and research infrastructure. Modernisation of the infrastructure
of Polish strategic research centres and synergy of measures executed by them will lead to an improve−
ment in the quality of research and will allow implementation of research projects on an international
scale, which will have their standard approach the European one. Measures on the central level will be
complementary towards measures on the regional level, which through support of regional range cen−
tres will be contributing to establishment of regional potential. Running scientific operation in Poland on
a global level projects co−financed from central means will be supported by development of informatic
infrastructure and information science and digital resources. In development of pilotage projects,
in development and testing of services, applications and systems for the needs of widespread usage in
the economy, education and public administration, use will be made of modern information technologies.
This will be a crucial element in establishment of an information society.

5.4.5. Increase of the competitiveness of Polish regions and preventing their social, economic and territorial
marginalisation
As was shown by the diagnosis, spatial differentiation in Poland at the level of voivodships is not
too high as compared to other European countries. Despite the fact that economic growth in Poland
concerns the entire territory it is higher in voivodships and areas, on which are the most dynamic
agglomerations and other major cities, which is confirmed by figures presented by CSO and Eurostat.
It is on those areas that foreign investments are allocated, new work posts are created, and those
particular areas determine export of highly processed products. In the period of 1995−2002 the mazo−
wieckie voivodship was – as compared to all European regions (NUTS II) – the quickest developing
(according to the purchase power parity of currencies) area of the present EU, while voivodships

75
 of eastern Poland (lubelskie, podkarpackie, podlaskie, świętokrzyskie, warmińsko−mazurskie), despite
stable growth, quicker than on average in EU, remain the poorest regions of the entire new EU. This is due
to the low dynamics in diffusion of development processes from metropolitan centres onto surrounding
regions – including rural areas, as well as a gradual process of structural changes on those areas –
especially as regards the situation in agriculture, creation of work places in other sectors and the level of
education and qualifications of population living on rural areas and in small towns that serve them.
Problems of the spatial dimension of social and economic development indicated in the diagnosis
and in the SWOT analysis indicate that strengths of the Polish economy include a sustainable polycen−
tric arrangement of the settlement system with a moderate concentration degree. Its appropriate use
and development should become a sound basis for a dynamic development of Poland. Simultaneously
the system of Polish towns is characterised by a considerable imbalance as regards economic operation
and the social sphere, which weakens its coherence. For this reason requisite for achievement of terri−
torial cohesion will be inter alia covering all problems and opportunities connected with the development
of urban areas and making investments in towns, which are a motor for regional development.
In implementation of the cohesion policy in Poland in the years 2007−2013 the urban dimension will
be manifested in three elementary scopes of operation:
1. Using the potential of the largest municipal centres as a driving force for regional development
– towns as centres of innovation and knowledge based economy – by introducing enhanced
competitiveness, promotion of entrepreneurship, innovativeness and development of services,
as well as obtaining and maintaining a highly qualified labour force.
2. Strengthening relations between metropolises and urbanised areas on the one hand, and areas
that surround them on the other, including small and medium towns and rural areas, which
comprises establishment of communication and teleinformatic correlations, and also economic,
service, cultural ties etc. This will contribute to spreading economic growth into adjacent areas
and to making use relative advantages of a large city – creation of new work places, possibilities
of economic cooperation, participation in social and cultural infrastructure.
3. Promoting internal coherence on urban areas to limit the high concentration of economic, eco−
logical and social problems within major urban centres, and enhancing the reconstruction
process of economic potential in small towns and settlements. For this purpose measures will
be promoted that comprise restoration of the physical environment, revitalisation of post−indus−
trial areas, protection and development of cultural and historical heritage, propagation of entre−
preneurship, development of local employment within common balanced strategies. Owing
to the diagnosed quantitative and qualitative deficit in the existing housing resources, one of the
elements of revitalisation in towns would be supporting measures aimed at renovation of housing
resources on areas afflicted or threatened by physical degradation and social exclusion.
The development of tourism is an opportunity that allows strengthening the position of metropolitan
centres, and at the same time provides a new development dynamics to smaller peripheral centres and
centres in which the hitherto development potential has been exhausted. Tourism is a form of activity
that links particular regions, joins urban and rural areas, activates rural areas by means of an activity
helping activate degraded areas, providing a new kind of sense to suburban areas which have tourist
and recreational functions.
Implementation of specific objective, Increase of the competitiveness of Polish regions and pre−
venting their social, economic and territorial marginalisation conforms to provisions of CSG as regards
territorial dimension of the cohesion policy. This objective would contribute to achievement of all three
elements of the NSRF strategic objective, both an increase in competitiveness of economy based on
knowledge and entrepreneurship, growth of jobs, as well as social, economic and spatial cohesion.
It covers the following areas:

76
Fuller utilisation of the endogenic potential of major urban centres
A key task is further assisting the development of metropolitan functions (including scientific, edu−
cational, cultural and tourist functions), better utilisation of the endogenic potential of major municipal
centres and enhancing relations between metropolises and urbanised areas and the surrounding rural
areas and small towns. Those measures conform to provisions of Guideline 2.1 CSG as regards The
contribution of cities to growth and jobs. In the forthcoming years resources within the cohesion policy
would be used to support the development of technical infrastructure on metropolitan areas and linking
all municipal centres by the transport system. It would support competitiveness of the regions, in which
major cities are situated. The basic results should comprise spreading the economic growth onto adja−
cent areas and benefiting from relative dominance of a big city – making use of the created work places,
possibilities of economic cooperation, participation in social and cultural infrastructure. This is only pos−
sible provided that development is consciously programmed in that particular direction – establishing
transport links between the metropolis or the urbanised area and their surroundings, economic, service
and cultural links etc. The execution of such objectives would be assisted by making use of well devel−
oped polycentric functional and spatial structure of Poland. On the basis of an existing and well formed
settlement network it is possible to develop a structure of towns. The development of towns is multi−
sectoral and multi−unit in nature. This especially concerns improvement of attractiveness of towns as
regards transport, environment and culture, as well as enhancing the role of towns as growth poles, and
establishment of a bigger number and better standard work places, through promoting entrepreneurship
and innovativeness. The balanced development of towns requires undertaking measures on all admin−
istrative levels and in association with specific sectoral policies. Independently of tasks which are strictly
sectoral in nature, a considerable part of the analysed objectives and measures has a clear regional
character and would be delivered in a decentralised way.

Hastening development of Eastern Poland voivodships

To assure success in implementation of the main provisions presented in the Lisbon Strategy,
which also include counteracting marginalisation and peripheralisation of problem areas, the cohesion
policy requires paying special attention to the poorest voivodships in Poland (lubelskie, podkarpackie,
podlaskie, świętokrzyskie, warmińsko−mazurskie) and also in the entire EU. The integrated impact of
the spatial policy, regional policy and sectoral policies must be directed at undertakings that would help
improve the attractiveness of those regions for potential investors, improvement of transport accessibil−
ity and improvement of the human capital quality. Apart from standard measures connected with devel−
opment of competitive strength in particular regions, measures shall be undertaken aimed at hastening
structural changes, of key importance with respect to low attractiveness of particular regional econo−
mies. To allow improvement of development opportunities on Eastern Poland areas it is particularly
important to improve the quality of human capital and increasing professional and spatial mobility, inter
alia through increasing the education level, especially on the secondary level, and development of non−
agricultural skills and improving the health condition of the inhabitants. Crucial is also development of
metropolitan functions in main economic centres (including scientific, educational and cultural func−
tions), linking those centres to the main economic centres in Poland and with European systems, as well
as improvement of the transport infrastructure in relations between the main municipal centres and
other towns, and in relations town – village, as well as improving accessibility to public transport sys−
tems, enabling better use of labour resources and increasing investment opportunities. In this respect
measures implemented on the area of Eastern Poland conform to the concept of territorial cohesion
defined in CSG, and in particular refer to Guidelines 2.1 and 2.2, i.e. The contribution of cities to growth
and jobs and Support the economic diversification of rural areas. Additionally, measures should be
directed at fuller use of the service sector for needs of development (including spas, tourist services),
unique in the European scale, natural environment and cultural values and promotion of selected
regional products (including ecological ones), food processing branches and industry, of fundamental

77
 importance for economic growth and jobs on that area. Also important is balancing the equipping level in
relation to the remaining areas with respect to environment infrastructure and utilisation for social and
economic development on areas situated along the external EU border. Economic activation voivodships
of eastern Poland would be performed with particular emphasis on the sustainable development rule.

Counteracting marginalisation and peripheralisation of problem areas

The main aim of measures undertaken on problem areas is to support transformations that assure
appropriate conditions for balance and long lasting development, by counteracting intensification
of marginalisation processes on selected groups of regions. One of the main tasks of state policy is
support for development in problem regions, which without having such support would be condemned
to gradual marginalisation and lasting limitation of development possibilities. Those measures comply
to CSG with respect to Guideline 2.1 Contribution of towns in growth and jobs, Guideline 2.2 Support the
economic diversification of rural areas and guidelines: 2.4 Cross−border cooperation, 2.5 Transnational
cooperation, 2.6 Interregional cooperation).
Revitalisation comprehended as a process of spatial, social and economic transformations in
degraded parts of towns, contributing to improved living conditions of the inhabitants, regaining spatial
order and economic activation, covers first of all parts of old and frequently monumental housing and
humanisation of neighbourhoods with buildings constructed of large sized reinforced concrete slabs. Its
objectives also include preservation of historical values (including mainly urban and architectonic ones),
emphasising their unique character and specific local conditions, which may as a consequence increase
their tourist attraction, and furthermore help increase growth opportunities. Revitalisation should include
towns of special importance for the development of the surrounding local arrangements, which are in
a difficult social and economic situation, as well as towns with high tourist values. Processes of revitalisa−
tion should also cover areas of towns afflicted by economic and social problems, which simultaneously
have high architectonic and urban values, which are elements of historical heritage, and are particularly
threatened by irreparable damage, and former industrial and military areas, which allow relative quick
adaptation of new municipal functions.
A separate problem is revitalisation of degraded municipal areas, which comprise destroyed build−
ings inhabited by people who are in threat of social exclusion. This revitalisation shall be executed by
means of combining technical measures with economic and social development on the basis of complex
plans for development of towns and/or revitalisation programmes. Technical measures would also
include overhauls and modernisation of the existing multi−family residential housing resources, as well
as adaptation of the existing building to residential purposes of households with low income or for
persons with special needs.
Regaining social and economic functions by former industrial and military areas is clearly one of
the most significant regional problems of united Europe. Although employment reduction in impaired
sectors was significant (in mining itself it amounted to ca. 2/3 of the initial state), however, the presently
achieved economic profitability may not be considered to be of a lasting character. The fact that on
those areas appears a new economic activity, which is to a large extent financed from foreign sources,
is not able to compensate losses resulting from necessity of closing down unprofitable industrial plants.
Support for former industrial and military areas should be based inter alia on reconstruction and
modernisation of municipal and transport infrastructure and its functional integration, improvement of
the condition of natural environment, including recultivation of fallows on former industrial lands, elimi−
nation of soil pollution and limiting threats, recultivation of lands back to a state that enables their new
usage and modernisation, and reconstruction of residential housing resources and other buildings.
Furthermore, apart from restructuring of unprofitable branches and industries as well as former industrial
and military areas, also of particular importance is restructuring of human resources, especially in
regions affected by phenomena of social pathology.

78
Assisting development of territorial cooperation
The specific geopolitical situation of Poland, the eastern border of which is simultaneously the
external EU border, is an area, which determines relations East−West in their new European dimension.
All border regions are subject to specific conditions. Various kinds of cultural, economic and administra−
tive disparities are most intense close to the border. Peripheral areas in relation to central regions
indicate development deficits. In particular cooperation with the regions from eastern European coun−
tries has acquired a new importance. There is a necessity of assuring development of cross−border
cooperation, development of border, transport, tourist infrastructure and that needed by environment
protection, as well as turning over Polish experience to regions of eastern neighbours of Poland. Devel−
opment of foreign cooperation of the Polish voivodships with their neighbours should be considered
a condition necessary for an increase in investment attraction, well prepared development of transport
infrastructure, and as a consequence development of economy. It is also an indispensable element of
cultural and political development. Impulses coming from abroad are weak and may not lead to in−
creased dynamics in the development of that area. In this context significance is gained also by the
development of transnational and interregional cooperation. Programmes delivered within supranation−
al cooperation would strive to support cooperation between Poland and the member states as regards
issues of strategic importance. They would concern first of all supporting measures, which are aimed at
improving mutual physical dependencies of particular territories (e.g. investments in balanced trans−
port), as well as intangible relations (systems, exchange between regions and between involved par−
ties). Programmes of interregional cooperation would on the other hand be focused on: enhancing
innovativeness, SMEs and entrepreneurship, environment protection and counteracting threats. In
addition, support would be provided to exchange of experience and good practice related to the develop−
ment of municipal areas, modernisation of the public sector services (such as health care and ruling on
the basis of ICT) and implementation of cooperation programmes, as well as studies and data collecting.
The ongoing measures that promote territorial cooperation compliant with Guidelines 2.4, 2.5, 2.6 CSG:
Cross−border cooperation, Transnational cooperation and Interregional cooperation.

5.4.6. Balancing growth opportunities and supporting structural changes on rural areas
Problems of rural areas must be addressed on two levels – the first one is connected with supporting
changes in the agriculture, which is the main source of employment for many inhabitants of rural areas,
and the second one – assumes enabling utilisation of the potential of those areas for economic growth
and jobs. The first level of problems would be coped with on the basis of instruments provided by the
Common Agricultural Policy, including European Agricultural Fund for Development of Rural Areas. The
second level, making use of non−agricultural development potential of rural areas, requires involving means
and instruments of the cohesion policy. Measures assumed for delivery on rural areas with support of
structural policy instruments relate directly to directions defined in CSG with respect to Guideline 2.2
Support the economic diversification of rural areas, fisheries areas and areas with natural handicaps.

Balancing development opportunities on rural areas

As was shown by the diagnosis, in Poland there are significant disparities in the development level
and in conditions inside given regions, especially in relations town−village. Those disproportions are
visible both as regards technical infrastructure, and in the social sphere. Consequently, cohesion policy
would be directed at development of rural areas, which are regions of economic, social, educational and
cultural marginalisation on the national scale. Measures aimed at balancing development opportunities
on rural areas would be focused on supporting development of technical and social infrastructure, crea−
tion of conditions for development of entrepreneurship and new work places outside agriculture, envi−
ronment protection, education of the young generation, life−long learning, establishment of conditions of
better accessibility to elementary services, including especially in respect to health protection. In the

79
 forthcoming years it is necessary to improve the transport infrastructure in relations town−village,
improve accessibility to mass transport systems, measures related to supplies of energy, good quality
water and disposal of sewage, establishment of efficient telecommunication links.
Simultaneously, in the process of regulating the living standard of the inhabitants, apart from
investments to be made in technical infrastructure, the cohesion policy would be focused on reducing
disproportions as regards development of human resources. Taking into consideration the anticipated
outflow of employees from agriculture in the forthcoming years, with maintained lower professional and
spatial mobility, especially of the older population, particular importance is gained by performance of
measures which are to counteract social exclusion and limiting the phenomenon of poverty. To improve
living conditions on rural areas it would be necessary to implement projects aimed at assuring sufficient
access to education of young people, access to culture, health protection services, services connected
with justice institutions. Within support for rural areas also measures would be executed which would be
directed at development of entrepreneurship, improving employment opportunities, improving profes−
sional and spatial mobility, balancing opportunities in access to the labour market, improving the education
level, especially non−agricultural professional abilities through access to life long learning.

Assisting structural changes

One of the factors that support structural changes on rural areas would also be the support of services
related to professional counselling and retraining of persons leaving work in agriculture, as well as promo−
tion of entrepreneurship, development of non−agricultural functions of rural areas (e.g. agrotourism, and
consequently protection of cultural heritage of rural areas or protection of agricultural landscape values).
In the development processes of rural areas a special role is ascribed additionally to municipal
centres, in which rural population may find work places and increase the education and abilities level,
and also may satisfy health requirements and cultural aspirations and needs. Special important in this
context is ascribed to supporting the development of those functions in small towns and in selected
gmina centres, which are directly connected with restructuring processes on rural areas, including in
particular health services, secondary level education, development of small and medium companies in
non−agricultural sectors, foreign tourists, spa functions, etc.

5.5. Interrelationships of Implementation of the Strategic Objective and Horizontal

Objectives

The above outlined horizontal objectives would hale direct impact on implementation of the main
objective in the following way.
Objective 1 – Improving the functioning standard of public institutions and development of partner−
ship mechanisms, simultaneously implements the strategic objective in the scope of strengthening the
administrative potential in Poland. Execution of this objective will enable creation of conditions for social
and economic development, and its implementation would facilitate effective introduction of the remaining
specific objectives through creation of appropriate legislative conditions, administrative environment
and facilitation of social dialogue.
Execution of objective 2 – Improving the quality of human capital and enhancing social cohesion
would help achieve a better utilisation of human capital and labour resources in creation of competitive
economy based on knowledge, and would consequently be included in delivery of the NSRF strategic
objective.
Creation of good conditions for increase in competitiveness of the economy is connected with
simultaneous investments in infrastructure. Execution of objective 3 – Development and modernization
of technical infrastructure which has the fundamental importance for growth of the competitiveness

80
of Poland and its regions would consequently contribute to execution of the strategic objective, enabling
indirectly the creation of new work places and better competitiveness of the economy.
Objective 4 – Improving the competitiveness and innovativeness of enterprises, including in par−
ticular the manufacturing sector with high added value and development of the services sector has
direct impact on creation of conditions for growth of economic competitiveness and modern work places.
Delivery of this objective takes place through investing in better competitiveness and innovativeness of
enterprises, which apply innovative solutions and start to play an essential role on international markets.
Objective 5 – Increase of the competitiveness of Polish regions and preventing their social, eco−
nomic and territorial marginalisation has a direct impact on achievement of social, economic and territo−
rial cohesion of entire Poland. Success of its implementation would depend on effective delivery of other
specific objectives. Investments in human resources, enterprises and infrastructure on a regional scale
would be directly transposed to delivery of the main objective. Simultaneously implementation of particular
investments on a regional level would affect improved living quality of inhabitants in entire Poland.
Execution of objective 6 – Balancing development opportunities and supporting structural changes
on rural areas would influence achieving social, economic and spatial cohesion of Poland. Support for
rural areas, complementary in relation to measures undertaken within Common Agricultural Policy would
be a component of the implemented strategic objective. Simultaneously, apart from supporting the tech−
nical infrastructure, measures within this objective would be addressed at decreasing disproportions
related to the quality of human resources.
The strategic objective of NSRF and horizontal objectives would be executed using operational
programmes (domestic ones) implemented within Objective 1 and regional programmes implemented
within Objective 1 and 3 of the cohesion policy. Those objectives would be executing particular horizon−
tal objectives in a complementary way, and their implementation would have direct impact on achieve−
ment of the strategic objective of NSRF. Programmes executed on the national level would to a large
extent facilitate the execution of the first four horizontal objectives. Those programmes include: Opera−
tional Programme Infrastructure and Environment (OP I&E) – financed from resources of ERDF and the
Cohesion Fund, Operational Programme Innovative Economy (OP IE) – financed from resources
of ERDF, Operational Programme Human Capital (OP HC) – financed from resources of ESF, Opera−
tional Programme Development of Eastern Poland (OP DEP) – financed from resources of ERDF and
Operational Programme Technical Assistance (OP TA) – financed from resources of ERDF. Programmes
executed on a regional level would to a large extent be implementing horizontal objectives 5 and 6, but
they would also affect implementation of the first four horizontal objectives. Programmes executed on
the regional level include 16 Regional Operational Programmes (ROP) and Programmes of European
Territorial Cooperation (OP ETC), financed from ERDF resources.

5.6. Indicators

In the light of the social and economic cohesion policy a synthetic measure of success in imple−
mentation of a strategic objective would be the rate at which disproportions on the national and regional
level between Poland and the EU are being reduced – measured by the level of Gross Domestic Product
(GDP) per capita. The present level of GDP per capita in Poland amounts to less than a half of the
average for 25 EU member states. Implementation of the main objective of NSRF would allow increas−
ing this indicator to the level of 2/3 of the average value for the EU. Such a rate of increase would allow
Poland to achieve the average development level of EU countries during a single generation. The
remaining horizontal objectives would be measured using indicators presented in the below table.
The below table contains quantified objectives defined for the needs of achieving the main objective
and horizontal objectives.

81
 Table 6. Basic objectives and performance indicators of NSRF38
Change
Assumed in value
Indicator Value of Source
Objective Indicator indicator of indicator
of the indicator and frequency
value in target caused
Lisbon in base year39 of measurement41
year (2013) by impact
Strategy
of EU
funding40
Average annual increase rate of GDP x 4.2 (2004−2006) 5.242 Central Statistical
of competitiveness for knowledge based economy and entrepreneurship

(%) (2011−2013) Office (CSO)

that assures employment growth and social cohesion level increase

6.1
Strategic objective: establishment of conditions for growth

(2011−2013) 30−35% HERMIN

GDP per capita according to PPS
(EU 25=100) 51.1 (2006) 65.0 ca. 30 % EUROSTAT
Structure of employed persons by
sectors of the economy (I/II/III) 17.4 /29.2/53.4 12.0/26.0/62.0 CSO/LFS

Employment indicator for persons

aged 15−64
• total/women x 52.8/46.8/58.9 60/56.5/63.5 CSO/LFS
• older persons aged 55−64 27.2/19.7/35.9 35/28/45
Final energy intensity of GDP
(EURO, in fixed prices from 2000 ) x 0.27 0.22 CSO

Average investment rate (%) 18.8 (2004−2006) 24.0 25−30% Own calculations
based on CSO
Work productivity per employed
person (EU 25=100) x 59.0 75.0 ca. 15% EUROSTAT

Annual inflow of direct foreign

investments in billion USD 9.643 10.0 NBP

Number of new work places ca. Monitoring

(in thousand) 0 3500/1750/1750 ca. 25% and evaluation
of NSRF
Average time of execution of court World Bank, study
Objective 1: Improving the functioning standard of public institutions

sentences (days) ca. 1000 ca. 200 of Doing Business

Monitoring and
evaluation of NSRF
Corruption perception indicator44 3.4 5 Ranking
and development of partnership mechanisms

of Transparency
International
www.transparency
international.org
Monitoring and
evaluation of NSRF
Quality of imposed legal regulations 0.8 1.0 World Bank, study
of governance
indicators
Governance effectiveness (indicator) 0.58 0.9 Indicator from –2.5
do +2.5, World Bank,
study of governance
indicators Monitoring
and evaluation
of NSRF
Average payment time for resources Monitoring and
on the basis of application for 4 months 1 month 2 months evaluation of NSRF
payments in operational programmes

38
NSRF monitoring indicators illustrate total changes in the social and economic situation in Poland, and not only changes resulting from intervention
of structural funds.
39
i.e. in 2005, unless specified otherwise.
40
as compared to the base year. Values were estimated based on the HERMIN model, however, as it does not always operate on indicators that
conform exactly to those contained in the table, not always conformity with values specified in chapter 4.4 can be achieved.
41
Annual, unless specified otherwise
42
Own estimations of the Ministry of Regional Development
43
In 2006 according to estimations of NBP – USD 14.7 billion.
44
Corruption perception indicator (10 – means no corruption)

82
 Change
Assumed in value
Indicator Value of Source
Objective Indicator indicator of indicator
of the indicator and frequency
value in target caused
Lisbon in base year39 of measurement41
year (2013) by impact
Strategy
of EU
funding40
Share in % of population aged 15−64
according to education level
• secondary (including basic
Objective 2: Improving the quality of human capital and

vocational and post secondary CSO/LFS

x
education) 59.4/56.0/63.2 65/61/69 EUROSTAT
• higher 13.4/14.6/12.2 17/18/15 (2005 – 4th quarter)
Graduates of higher schools on
faculties of mathematics, natural x 14.7/7.8/27.5 Own calculations
enhancing social cohesion

sciences and technical sciences (academic year 22/13/31 based on CSO

(% of graduates of higher schools, total) 2004/2005)
Unemployment rate total, males 13.9/14.9/13.0
and females (%) x (2006) 10.0/12.0/9.5 25−30% CSO/LFS
Percentage of persons aged 25−64 years
learning or acquiring additional
education in the general number 5.0/5.6/4.3 10/11/9 EUROSTAT
of population of that age, in %,
total women and men
Unemployment rate of young persons x 36.9/38.3/35.745 20/21/19 25−30% CSO/LFS
aged 15−24 (%) (quarterly)
Relative poverty risk indicator
following social transfers (%) 21/20/21 14/13/14 EUROSTAT
Average life expectancy (years)
women 79.4 80.9
men 70.8 73.9 CSO
Total length of highways (km) 552 1754 ca. 40% CSO
Objective 3: Development and modernization of technical

importance for growth of the competitiveness of Poland

Total length of expressways (km) 258 2555 ca. 80% CSO

and social infrastructure which has fundamental

Road traffic safety (fatalities per 100 14.3 7.4 Own calculations
thousand inhabitants) based on CSO
Passenger traffic using municipal
transport means (million passengers) 4150 4225 CSO

Length of railway lines adapted 538 1786 ca. 70% Polskie Koleje
to speed of 160 km/h and more Państwowe, Polskie
Linie Kolejowe S.A.
(PKP PLK.S.A.)
Population using services of sewage
treatment plants (% of total number) 85.2/20.4 90/30 CSO
town/village
Share of electric power from
renewable sources in total use x 2.9 7.5−8.5 80−85% EUROSTAT
of electric power (%)
Emission of glasshouse gas (base year
1988 = 100 – equivalent CO2) 68.7 (2004) 89 CSO

Total outlays on research

added value and development of the services sector
Objective 4: Improving the competitiveness and

particular the manufacturing sector with high

and development (as % of GDP) 0.57 1.5 65−70%

innovativeness of enterprises, including in

– including outlays of the sector x CSO

of enterprises (as % of GDP) 0.18 0.4 65−70%
Share of industrial enterprises bearing
outlays on innovative operation x 38 60 CSO
(as % in enterprises, total)
Share of high and medium technology
products in sold produce
in industry (%) 30.6 37.5 CSO
46
Number of issued patents x 21 (2002) 240 65−70% CSO
Expenditures for informatic
and telecommunication x 7.4 8.5 ca. 80% EUROSTAT
technologies (% GDP)

45
In 2006 according to preliminary estimates – for a total of 29,8
46
Concerns patents granted by the European Patent Office (EPO) and patents granted in USA (USPTO).

83
 Change
Assumed in value
Indicator Value of Source
Objective Indicator indicator of indicator
of the indicator and frequency
value in target caused
Lisbon in base year39 of measurement41
year (2013) by impact
Strategy
of EU
funding40
Accessibility of e−government on−line
services (as % of 20 elementary x 64 80 EUROSTAT
services)
Persons with access to broadband
Internet (as percentage of entire 3.9 (2006) 23.0 80−90% EUROSTAT
population, %)47
Share of market services in gross 49.6 (2006) 53 Own calculations
added value % based on CSO
Average level of differentiation
competitiveness of Polish regions and
preventing their social, economic

in GDP per capita value by voivodships 24 (2004) not higher Own calculations
and territorial marginalisation
Objective 5: Increase of the

(in relation to Poland =100)48 w % than 25 based on CSO

Average indicator of unemployment
rates in 3 subregions (NUTS III) 37.0 22.0 25−30% CSO/LFS
with the highest rates (%)
Major urban centres49 included in the
network of expressways or motorways 650 18 Monitoring of NSRF

Average yearly GDP per capita 8.1 (2004) not lower Own estimations
increase rate for 5 voivodships than on average based
of Eastern Poland51 in Poland on EUROSTAT data
Urbanisation indicator 61.4 65 CSO
Unemployment rate on rural areas (%) 16.1/14.4/18.352 13.5/11.0/14.5 25−30% CSO/LFS
structural changes on rural areas

Employment indicator for persons

Objective 6: Balancing growth
opportunities and supporting

aged 15−64 on rural areas (%) 47.0/39.1/55.1 53/44/62 CSO/LFS

Number of persons employed 15 11 Own calculations

per 100 hectares of arable lands53 based on CSO
Share of households using access
to the Internet in villages (%) x 19 70 ca. 80% CSO

Population aged 15 and more (total)

continuing education – rural areas (%) 13.6 (2002) 17 CSO (consensus)

Percentage of children inhabiting

rural areas, covered by the pre−school 17.5 30 Own calculations
system aged 3−5 (%) based on CSO
Source: own study of the Ministry of Regional Development (MRD), based on data of CSO

47
Number of broadband links related to the population number, the indicator illustrates use of broadband internet regardless of user type.
48
Calculated according to the variability ratio (standard deviation weighted by the population number GDP per capita/ average GDP level for Poland)
49
Major urban centres in understanding of voivodship centres i.e. capitals of regions (Bydgoszcz and Toruń, Gorzów and Zielona Góra separately),
50
Major urban centres already connected in the network of expressways or motorways: Katowice, Kraków, Łódź, Opole, Poznań, Wrocław,
51
Voivodships: lubelskie, podkarpackie, podlaskie, świętokrzyskie, warmińsko−mazurskie.
52
In 2006 according to preliminary estimates – 13.0
53
concerns farms larger than 1 hectare

84
6. MEASURES IN SUPPORT OF ENHANCING ADMINISTRATIVE
CAPABILITIES WITHIN NSRF FOR THE YEARS 2007−2013

Priority support areas indicated in the description of Objective 1 of NSRF – Enhancing the functioning
quality of public institutions and expansion of partnership mechanisms result from reforms undertaken by
the Government of Poland for purposes of modernising the operation of public administration. The basic
document, the provisions of which set out the reform trends in the public sphere in Poland, is the National
Reform Programme for the years 2005−2008 in support of implementation of the Lisbon Strategy. Further−
more measures in support of enhancing administrative capabilities within the Cohesion Policy in Poland in
the years 2007−2013 contribute to implementation of provisions of the public administration reform stipu−
lated in such documents, as: Regulatory Reform Programme, Strategic trends of informatisation devel−
opment in Poland until 2013 and forecasting perspective for transformations of the information society
up to 2020, Anti−corruption Strategy and National Development Strategy for the years 2007−2015.
A factor that hinders preparation of a complex reform of the Polish public administration is that no
complex analysis for functioning of public administration in Poland is available. Hence an elementary
measure aimed at enhancing administrative capabilities within NSRF is to diagnose the standing
of public administration in horizontal spheres, as well as in selected aspects of its functioning. This
measure will be implemented within priority V Good governance, OP Human Capital.
Measures designated for implementation of Objective 1 of NSRF in the sphere of enhancing capa−
bilities of public institutions to efficient and effective implementation of tasks comprise support for creating
strategic abilities of the Polish public administration, improving institutional efficiency of public institu−
tions, enhancing the quality and accessibility of public services, improving the competences of the
clerical staff and development of administrative capabilities of the justice administration. They will be
implemented first of all as complex projects oriented at modernisation of the public sphere.
In addition modernisation of the Polish public administration is also taking place through participa−
tion of its units in development and implementation of Community policies, including the EU Cohesion
Policy. Community principles concerning ways of participation of the Polish administration in benefiting
from structural funds and the Cohesion Fund affect the development pf process organisation of tasks in
administration, enhance strategic capabilities as regards programming, monitoring and evaluation, as
well as cooperation mechanisms through the necessity of running vertical and horizontal coordination.
Development of strategic capabilities of the Polish public administration within NSRF will be imple−
mented by providing support to processes of establishment and implementation of policies and pro−
grammes, including in particular by enhancing cooperation and coordination between public administra−
tion units and through enhancing abilities related to programming, monitoring, implementing and evalu−
ation of development policies. Measures in this scope are covered by provisions of the National Reform
Programme, which in the sphere of microeconomic and structural policy foresees measures in support
of better quality of legal regulations (measure 2.1.) and by provisions of the Regulatory Reform
Programme, adopted by the Council of Ministers in July 2006. Support from means of structural funds
with respect to regulatory reforms and abilities of developing and implementation of policies and
programmes within NSRF will be implemented through the following measures financed from the European
Social Fund (priority V Good governance, OP Human Capital):
• improvement of functioning of the system that evaluates consequences of regulations,
• implementation of programmes directed at simplification of national legal acts,
• development and implementation of systems for diagnosing and elimination of administrative
burdens, including in the sphere of economic law,
• development and implementation of a monitoring system for legislation works of the Council
of Ministers,

85
 • enhancing capabilities of the public administration (government and self−government administra−
tion) with respect to development and implementation of programmes and strategies,
• enhancing local self−government units in implementation of high quality local legal regulations,
• rationalisation of coordination mechanisms and cooperation between public administration units.
Enhancing institutional efficiency in the Polish public administration within NSRF will be achieved
through modernisation of management processes in public administration, including first of all through
implementation of the financial management system according to tasks and development of modern
human resources management. To improve institutional efficiency measures will be instigated which
are covered by provisions of the National Reform Programme (measure 1.7 Implementation of a long−
term budgetary planning system), which assumes support for improving the effectiveness in which public
means are used in the sector of public finance.
As regards enhancing institutional efficiency measures that will be executed will be financed from
the European Social Fund (priority V Good Governance, OP Human Capital) aimed at modernisation of
the modernisation processes, i.e.:
• support for deployment of the financial management system in task formulation,
• support for development and implementation of the management system by objectives,
• implementation of managerial rationalisation in public administration on the level of the entire
organisation, as well as in selected aspects of public administration units operation as well
a identification and propagation of good practices in this respect,
• support for the staff management process, including the development of models, tools and stand−
ards for human resources management, and support for personnel and training departments in
public administration units.
One of the elements in establishment of institutional efficiency of the Polish administration
is improving the quality and accessibility of public services, by introducing modern services provided by
electronic mail. In addition informatisation of public administration allows rationalisation in functioning
of public administration, and as a consequence at reducing administrative barriers for business opera−
tion of entrepreneurs, as well as facilitating and hastening the information flow between different admin−
istration levels and the customers. Measures in this respect contribute to implementation of the National
Reform Programme (measure 2.2. Simplification of administrative procedures and reducing costs of
running business operation and measure 3.3 Development of information and communication technolo−
gies in economy and administration) and conform to the Strategic trends of informatisation development
in Poland until 2013. Furthermore, they are covered by measures of the Government of the Republic of
Poland, aimed at limiting bureaucracy that hinders the development of enterprises, and used for facilitat−
ing investments (e.g. introduction of a single service desk for entrepreneurs in an office). For this
purpose complementary measures will be executed within OP Human Capital (Priority V Good Govern−
ance) and OP Innovative Economy (Priority 7 Establishment and development of information society in
Poland), and namely:
within OP Human Capital
• introduction and propagation of client service standards in self−government administration,
• introduction of the “one−stop−shop” system (single access points for entrepreneurs in administra−
tive offices),
• development of system related provisions and informatic tools to assist public management;
within OP Innovative Economy
• establishment or extension of informatic systems for public administration which assist manage−
ment in the public sector (e.g. electronic flow of issues and documents, state electronic registers,
electronic signature),

86
 • establishment and development of platforms for integrated electronic services designated for
business and for citizens related inter alia to fiscal settlements, administrative charges, registra−
tion of business operation, services related to public procurement,
• establishment of multi−channel transaction platforms,
• making available and promoting standards for electronic communication between administration
on the one hand, and enterprenurs and citizens on the other.
Measures in support of investments in human capital are aimed at enhancing professionalism
of clerical staff by improving their qualifications. Objective 1 of NSRF assumed measures oriented at
enhancing transparency in public administration, which conform to provisions of the Anti−Corruption
Programme – Anti−Corruption Strategy – II stage of implementation 2005−2009, adopted by the Council
of Ministers on 25 January 2005. One of the strategic objectives is the establishment of transparent and
citizen friendly public administration structures suitable for an open information society. Objective 1 of
NSRF will be implemented through measures anticipated in priority V OP HC Good Governance:
• improvement of qualifications of staff employed in public administration, especially by reviewing
training needs, as well as general and specialised training courses (plans comprise the delivery
of training courses directly connected with the reform programmes being implemented, inter alia
as regards task based planning and improving the functioning of the evaluation system of regu−
lation consequences),
• working out competency standards for staff employed in local self−government units,
• making evaluations of training needs in local self−government units, including inter alia planning
measures on the basis of results of executed studies,
• international exchange programmes for staff employed in local self−government units,
• improving the ethical culture level in public administration personnel by way of advisory assist−
ance and promotion of ethical attitudes,
• advisory assistance and training in the scope of ethics and avoiding conflict of interest in local
self−government,
• promotion of principles, mechanisms and procedures that enhance clarity of the local self−gov−
ernment especially in the form of experience exchange networks, information and promotion
campaigns, seminars, conferences and competitions.
An area that requires particular support to allow achievement of appropriate administrative capac−
ity is the justice administration. Measures aimed at assuring a high quality of services provided by the
justice administration through improving the efficiency and effectiveness of functioning of justice admin−
istration units are contained within the National Reform Programme (Measure 2.3. Rationalisation of
economic judiciary) and are consistent with other measures launched by the Polish government in sup−
port of improving the operation of courts (e.g. rationalisation of court proceedings). Support for the
justice administration in priority V OP Human Capital covers the following measures:
• diagnosing the justice administration standing,
• deployment of rationalisation measures to facilitate access to the justice administration and man−
agerial rationalisation measures in selected areas of functioning of institutions,
• propagation of information concerning alternative ways of dispute resolution,
• general and specialised trainings for the justice sector personnel.
A separate intervention area specified in Objective 1 of NSRF is support for institutions that imple−
ment NSRF. Intervention in this area differs from measures executed within NSRF in support of enhancing
the capabilities of public institutions to efficient and effective implementation of tasks, first of all different
objectives of granted assistance, and also a limited group of support beneficiaries. Measures in this
scope are to assure efficient NSRF implementation, and within it of operational programmes, and are

87
 addressed at units participating in NSRF implementation in the years 2007−2013. Support for institutions
that implement NSRF covers the following financial operations from technical assistance means:
• enhancing and financing of employment, working out and implementation of human resources
management and continuous advancement of staff qualifications,
• supporting processes that take place in implementation of NSRF and preparation of future oper−
ations in structural funds and programme documents for the programming period after 2013,
• assuring means and instruments indispensable for realisation of an effective evaluation process
of the NSRF implementation in conformity to preset requirements,
• assuring the necessary equipping for implementation of tasks related to implementation of NSRF,
as well as preparation, modernisation and adaptation of premises used by entities involved in
management and implementation of NSRF,
• supporting informatic systems that serve NSRF implementation processes, in particular through
financing their establishment, development and keeping up,
• supporting the process of communication, information and NSRF promotion, and the process
of experience exchange and information flow between participants of the NSRF implementation
process.
The above mentioned measures are being executed within OP Technical Assistance and compo−
nents of technical assistance in other operational programmes.
Support for the third sector in Objective 1 of NSRF is strictly correlated with non−government
organisations playing a role in the process of providing public services. To establish appropriate condi−
tions for delegation of tasks to public institutions from the third sector measures will be launched in
support of development of a partnership state model which comprise working out cooperation mecha−
nisms between public administration and institutions of the third sector, as well as popularisation
of a partnership method in creating policies and implementation of public tasks through assuring appropri−
ate information and education campaigns. An important element in development of partnership in rela−
tions between public administration and non−government organisations and social and economic part−
ners is the development of cooperation in creation of public policies and programmes through propaga−
tion of the principles of consultations and partnership and social dialogue institutions. Including the third
sector in the process of providing public services necessitates having those institutions appropriately
prepared for professional execution of public tasks by enhancing their potential in this respect. Meas−
ures in this scope will be realised pursuant to provisions of the Act dated 24 April 2003 on public utility
operation and on volunteer operation.
Measures aimed at supporting better functioning of public institutions anticipated in NSRF are
financed form means of the European Social Fund and the European Regional Development Fund. The
OP Human Capital assigns 610m euro on measures connected with implementation of the good
governance principle in the public administration sphere. Support for technical assistance within all
operational programmes amounts to ca. 2.5 billion euro.

88
7. COORDINATION OF THE COHESION POLICY WITH MEASURES
EXECUTED WITHIN THE LISBON STRATEGY AND NDP

7.1. Key Spheres of the Lisbon Strategy Executed in Poland

Pursuant to stipulation of the document that set up Community priorities for the cohesion policy for
the years 2007−2013, i.e. CSG, intervention delivered through NSRF would be aimed at implementation
of the top Community priorities, formulated in the renewed Lisbon Strategy. The transposition method
for particular elements of the cohesion policy to stipulations of the Lisbon Strategy in NSRF takes into
account recommendations contained in CSG. Both on the strategic level and on the operational level
of NSRF, particular emphasis was placed on directing the planned measures of areas that contribute
to delivery of the Lisbon priorities, included in the National Reform Programme in favour of execution of
the Lisbon Strategy.
On the NSRF strategic level, measures favourable to achievement of provisions of the Lisbon
Strategy would be executed in the following spheres:
• within Objective 1 of NSRF – Improving the functioning standard of public institutions and devel−
opment of partnership mechanisms, support would be granted to undertakings favourable
to modernisation of the Polish institution and regulatory system, and which affect positively the
development of social dialogue and partnership
• within Objective 2 of NSRF – Improving the quality of human capital and enhancing social cohe−
sion, measures would be undertaken to create a bigger number of better work places,
• within Objective 3 of NSRF – Establishment and modernisation of technical and social infrastruc−
ture crucial for increase of Poland’s competitiveness, measures would be undertaken in support
of making Europe a more attractive place for investments and work,
• within Objective 4 of NSRF – Improving the competitiveness and innovativeness of enterprises,
including in particular the manufacturing sector with high added value and development of the
services sector, knowledge and innovations would be promoted in favour of economic growth,
• within Objective 5 of NSRF – Increase of the competitiveness of Polish regions and preventing
their social, economic and territorial marginalisation, measures would be implemented in favour
of making Europe a more attractive place for investments and work and to support knowledge
and innovations in favour of economic growth,
• within Objective 6 of NSRF – Balancing growth opportunities and supporting structural changes
on rural areas, the intervention would be aimed also on making Europe a more attractive place
for investments and work.
NSRF shall strive to emphasise the need of making investments in spheres with a high develop−
ment potential, which are a condition for successive achievement of the economic development level
similar to that in wealthy EU member states. Among numerous cohesion measures, in the operational
part of NSRF determined were areas defined as levers for economic growth and jobs, which would form
the core of measures undertaken within operational programmes for the years 2007−2013.

89
 7.2. Coordination of Implementation Instruments of the Lisbon Strategy

Pursuant to the new concept of implementation of the Lisbon Strategy, the process of NSRF pro−
gramming and that of its delivery instruments covers challenges being subject of IG guidelines, priorities
of NDP conforming to them and those of CSG.
It should be emphasised that dissimilarity of time horizons of the national documents – NDP and
NSRF – has a significant impact on the ultimate form of pro−cohesion and pro−Lisbon measures pro−
grammed within NSRF.
In connection with such prerequisites definition of the scope of support within NSRF took place
on the basis of two objectives: directing a new generation of operational programmes on priority spheres
of the Lisbon Strategy and strengthening and supplementing measures assume by NDP, taking into
consideration conclusion from the recently diagnosed macroeconomic and microeconomic situation
of Poland. It should be emphasised that directions that supplement support for NDP had been programmed
in NSRF on the basis of recommendations contained in Commission Communication for the spring
summit of the Council of Europe – Time to move up a gear (spring 2006) – and in Appendix dedicated
to the Polish NDP 54. In the process of NSRF programming particular emphasis was placed on priority
spheres of the Lisbon Strategy indicated during the above mentioned summit. Those spheres include:
increasing investments in knowledge and innovations, releasing the economic potential, particularly SMEs,
measures in a situation of globalisation and aging of the societies (especially through increasing
employment of the so−called priority groups) and striving at integrated and effective energy policy of the
EU. Support for those areas had been reflected in selected priority axes of relevant operational
programmes and in priorities of NDP, which also covers other measures in support of those spheres.
Transposition of stipulations of IG, NDP and CSG to NSRF is as follows:
Objective 1 of NSRF – Improving the functioning standard of public institutions and development of
partnership mechanisms would be favourable to implementation of the Lisbon priority assuming the
establishment of a bigger number of better work places. Measures executed within this objective would
be covered by macroeconomic IG guideline No. 3 – Promoting effective allocation of resources oriented
on growth and jobs and No. 5 – Propagation of better cohesion between macroeconomic, structural and
employment policies. Those guidelines were reflected in Priority 1 of NDP concerning consolidation and
improvement of effectiveness in management of public finance. Achievement of provisions related to
objective 1 of NSRF would also be delivery of Guideline of CSG No. 1.3.4 concerning administrative abilities.
Areas covered by Objective 1 of NSRF would be subject of interventions within all operational
programmes. Particular support would be provided within OP Human Capital and OP Technical
Assistance, as well as through OP Innovative Economy, 16 Regional Operational programmes, OP
Infrastructure and Environment, OP Development of Eastern Poland, OP European Territorial
Cooperation.
Implementation of the Lisbon challenges connected with establishment of a bigger number o better
work places would be subject of measures within Objective 2 of NSRF – Improving the quality of human
capital and enhancing social cohesion. This objective would also be supplementing for direction
of measures within NDP in support of increasing the employment indicator taking into account regional
differentiation and the consequent needs observed on particular labour markets and includes one of the
priorities defined during the spring summit of the Council of Europe in 2006 which indicated the neces−
sity of making investments in education systems and R&D. Measures undertaken in this scope would be
delivered by IG as regards the employment policy guidelines No. 17−20, which strive at lasting attracting
to the labour market of a bigger number of persons, increasing the labour supply and modernisation

54
COM(2006) 30 final version (part 2).

90
of social care system. The specified guidelines have been transposed to the Polish conditions in the
form of Priority 5 of NDP – Creation and maintaining new work places and reducing unemployment.
They are also the subject of CSG Guideline No. 1.3.1 Attract and retain more people in employment and
modernise social protection systems, as well as to some extent CSG guideline No. 1.3.2 Improve adapt−
ability of workers and enterprises and the flexibility of the labour market.
Objective 2 of NSRF would be advantageous to implementation of IG guidelines No. 21 and 22,
concerning improvement of adaptation abilities of employees and enterprises, contained also in Prior−
ity 5 and in Priority 6 of NDP, which assumes improvement of the above mentioned adaptation skills
through investments in human capital. Execution of those measures would at the same time be an
answer to the question to challenges for the labour market indicated by the Council of Europe, result−
ing from the phenomena of globalisation and ageing of societies. The above measures would be used
fully to deliver CSG guideline No. 1.3.2 Improve adaptability of workers and enterprises and the
flexibility of the labour market.
Within NSRF Objective 2 measures would be executed aimed at delivery of IG guidelines No. 23
and 24, related to increasing investments in human capital through better education and enhancement
of abilities. Those guidelines have been transposed to the Polish conditions in the form of Priority 6
of NDP. They are also subject of CSG guideline No. 1.3.3 Increase investment in human capital through
better education and skills.
All operational programmes have been directed at delivery of provisions contained in Objective 2
of NSRF. Achievement of Objective 2 would be implemented first of all through OP Human Capital and
16 ROP, and also OP Innovative Economy, OP Infrastructure and Environment, OP Development
of Eastern Poland, OP Technical Assistance and OP ETC.
The Lisbon priority which assumes making Europe a more attractive place for investments and
working would be carried out within Objective 3 NSRF – Establishment and modernisation of technical
and social infrastructure crucial for increase of Poland’s competitiveness. In addition, the role of Objec−
tive 3 is to emphasise the priority character of activities in favour of safe and permanent energy supplies,
pursuant to conclusions of the spring summit of the Council of Europe concerning establishment
of integrated and effective energy policy of the EU. Striving at achievement of this objective is included
in IG Guideline No. 16 – To expand, improve and link up European infrastructure and complete priority
cross−border projects and No. 11 – To encourage the sustainable use of resources and strenghten the
synergies between environmental protection and growth. Both those guidelines have been transposed
to Priority 4 of NDP – Increase of innovativeness of enterprises and Development and modernisation of
infrastructure and assuring competition conditions in system sectors. Furthermore, Guideline No. 11,
in the part related to enhancing the synergy effect between environment protection and growth, consti−
tutes a basis for Priority 3 of NDP related to improved innovativeness of enterprises. Execution of Objective
3 of NSRF would be delivery of Guidelines CSG No. 1.1.1 Expand and improve of transport infrastruc−
tures, No. 1.1.2 Strengthen the synergies between environmental protection and growth and No. 1.1.3
Address Europe’s intensive use of traditional energy sources.
Achievement of provisions of Objective 3 of NSRF would be assisted by all operational programmes.
Involved to the greatest extent would be OP Infrastructure and Environment and 16 ROP, next OP
Development of Eastern Poland, OP Innovative Economy, OP Human Capital, OP Technical Assistance
and OP ETC.
Increase in attractiveness of Europe as a place for investments and work would also be enhanced
by measures which are being implemented within objective 5 of NSRF – Increase of the competitive−
ness of Polish regions and preventing their social, economic and territorial marginalisation and within
objective 6 of NSRF – Balancing growth opportunities and supporting structural changes on rural areas.
Undertakings aimed at execution of the above defined objectives would be included in the territorial
dimension of the cohesion policy, contained in provisions of CSG concerning the contribution of towns to

91
 economic growth and employment, supporting economic diversification of rural areas and transborder,
supranational and interregional cooperation.
Measures within objective 5 and objective 6 of NSRF would be executed using all operational pro−
grammes. Implementation of tasks within Objective 5 the following would be involved in particular: 16
ROP, OP Human Capital and OP Development of Eastern Poland, and subsequently OP Infrastructure
and Environment, OP Innovative Economy, OP European Territorial Cooperation and OP Technical
Assistance. Achievement of provisions within Objective 6 would be facilitated first of all by intervention within
16 ROP and OP Human Capital, as well as OP Development of Eastern Poland, OP Infrastructure and
Environment, OP Innovative Economy, OP European Territorial Cooperation and OP Technical Assistance.
Execution of Lisbon tasks aimed at studying knowledge and innovation in favour of economic
growth would be supported by measures implemented within objective 4 of NSRF – Improving the
competitiveness and innovativeness of enterprises, including in particular the manufacturing sector with
high added value and development of the services sector. Objective 4 is also an exposition for supple−
menting measures of NDP, the role of which is to increase competitiveness and innovativeness of enter−
prises, especially SMEs, as well as supporting public institutions from the R&D sector pursuant to prior−
ity Lisbon areas defined during the spring summit of the Council of Europe. This objective is comple−
mentary with Guidelines IG No. 7 – To increase and improve investment in R&D, No. 8 – To facilitate all
forms of innovation and No. 9 – To facilitate the spread and effective use of ICT and build a fully inclusive
information society. Those guidelines have been reflected in Priority 3 of NDP, which promotes develop−
ment of innovativeness of enterprises, and contains measures in support of increasing investments
in knowledge and innovations, support for R&D operating in favour of economic growth and support
instruments for new enterprises. Simultaneously the above Guidelines of IG have been transposed to
CSG as Guideline No. 1.2.1 Increase and better target investment in RTD No. 1.2.2 Facilitate innovation
and promote entrepreneurship and No. 1.2.3 Promote the information society for all, which are aimed at
increasing and appropriate directing of R&D, facilitation of innovations and promotion of entrepreneurship,
and also promotion of informative society (respectively).
Objective 4 of NSRF is to assure the execution of recommendations contained in IG Guideline No.
10 related to establishment of a stable industrial basis. This Guideline was reflected in provisions
of Priority 2 NDP, related to development of entrepreneurship, and to the previously mentioned Priority
4 NDP, related to the development of infrastructure and competitiveness in system conditions.
Measures within objective 4 would support implementation of Guideline IG No. 15, with postulates
promotion of work culture based on entrepreneurship and the establishment of advantageous condi−
tions for the development of SME. This guideline was reflected in its entirety in Priority 2 of NDP, within
which implemented are measures aimed at releasing the economic potential, in particular for SMEs.
Furthermore, it is also a source for Community Strategic Guideline No. 1.2.4 Improve access to finance
and No. 1.2.2 Facilitate innovation and promote entrepreneurship.
Execution of challenges related to Objective 4 of NSRF would take place through implementation
of all operational programmes. Improvement of competitiveness and innovativeness in enterprises would
to a large extent be supported OP Innovative Economy and OP Human Capital, and then 16 ROP, OP
DEP, OP I&E, OP ETC and OP TA.
Knowledge and innovations in favour of economic growth would also be supported within Objective
5 of NSRF, aimed at improving competitiveness of the regions in the light of the territorial dimension
of the cohesion policy contained in CSG.
Below presented is a synthetic table which presents cohesion and complementary nature of measures
planned within NSRF with IGGJ, NDP and CSG.

92
Table 7. Complementarity between NSRF and IG, NDP and CSG
CREATION OF A LARGER NUMBER OF BETTER WORK POSTS
Lasting attraction of a bigger
number of persons
17−20
to the labour market
and increasing labour supply
and modernisation of social
assurance systems
Improving adaptational
21−22
capabilities
of employees and enterprises
Increasing investments in human
23−24
capital through better education
and better abilities
1 Assuring economic stability
2 Assuring durabilty of economic
development
3 Promoting effective distribution
of resources
EUROPE AS A MORE ATTRACTIVE PLACE FOR INVESTMENTS AND WORK
Development and improvement
of the infrastructure in Europe
16
and implementation of priority
transborder projects
Support for sustainable use
of resources and enhancing
11
the synergy effect between
environment protection
and growth
Improving the human capital standard and enhancing
Attract and retain more people
1.3.1
in employment and modernise
5.
social protection systems
Creating and maintaining new
work posts and reducing
unemployment
social cohesion
Objective 2.
Improve adaptability
1.3.2
of workers and enterprises
and the flexibility of the labour
market
6.
Improving adaptational
capabilities of employees
and enterprises through Increase investment in human
1.3.3
investments in human capital capital through better education
and skills
Improvement of the standard
of partnership development
functioning and mechanisms
of public institutions
Objective 1.
1.
1.3.4
Consolidation of public finance Administrative Capacity
and improvement of public
finance management
Establishment and modernisation
1.1.1
4. Expansion and improvement
of competitiveness in Poland
infrastructure of elementary
of the transport infrastructure
Development and modernisation
importance for growth
of the infrastructure of technical and social
Objective 3.
and assuring competitive Taking up the issue of intense
1.1.3
conditions in network sectors use of traditional energy sources
in Europe
3. Enhancing synergy between
1.1.2
Increase in innovativeness environment protection
of enterprises and growth
Increase in competitiveness
counteracting their social,
of Polish regions and
economic and spatial
marginalisation
Objective 5.
Contribution of towns into
2.1
growth and employment
Balancing development
changes and assisting
structural changes
Supporting economic
Objective 6.
on rural areas
differentiation on rural areas,
2.1
fishery areas and areas
with unfavourable situation
owing to natural conditions
93
 IG NDP CSG NSRF

KNOWLEDGE AND INNOVATIONS IN SUPPORT OF ECONOMIC GROWTH

in particular the manufacturing sector with high added value and development
1.2.1
Increasing and better directing

Improving the competitiveness and innovativeness of enterprises, including

Increasing and raising the level
7

of investments on R&D of investments for BRT,

1.2.2
Facilitating innovations and
3. promoting entrepreneurship
Supporting innovations
8

Increase in innovativeness of
enterprises

1.2.4
Improving access to financing
Propagation and effective use
of ICT and creation

of the services sector

9

of a universal information

1.2.3
Promoting information society

Objective 4.
society for all

1.2.2
4. Facilitating innovations and
Development and modernisation promoting entrepreneurship
Establishment of powerful of infrastructure and assuring
10

industrial base competition conditions in system

1.2.4
sectors Improving access to financing

Facilitating innovations and

1.2.2
Promotion of work culture
based on entrepreneurship 2. promoting entrepreneurship
Development
15

and establishment of conditions

favourable for the development of entrepreneurship 1.2.4
of SMEs Improving access to financing

Supporting economic differentiation of rural

disadvantageous situation owing to natural

areas and fishing areas and areas with
Objective 5.

conditions
Conribution of towns to growth
2.1

and jobs

Balancing growth opportunities and

supporting structural changes on

Supporting economic
Objective 6.

rural areas

differentiation of rural areas

2.2

and fishing areas and areas

with disadvantageous situation
owing to natural conditions

94
8. COORDINATION OF MEASURES EXECUTED WITHIN
COHESION POLICY WITH MEASURES EXECUTED WITHIN
THE COMMON AGRICULTURAL POLICY AND THE COMMON
FISHERY POLICY

Shifting development measures concerning agriculture and rural areas and measures related
to fishery which up to now were financed from the Guidance Section of the European Agriculture Guid−
ance and Guarantee Funds and the Financial Instrument for Fisheries Guidance outside the cohesion
policy to the Common Agricultural Policy and the Common Fishery Policy respectively means a neces−
sity of working out coordination mechanisms of the cohesion policy with policies related to the develop−
ment of rural areas, which are, especially in Poland, areas with low level of social and economic devel−
opment. Simultaneously guidelines of the cohesion policy for the years 2007−2013 assume that it is
to play a leading role in support of the economic restitution process on rural areas, supplementing
measures supported within a new fund in support of development of rural areas (European Agricultural
Fund for Rural Development EAFRD) and fund in support of rationalisation of the fishery sector economy
(European Fisheries Fund). This requires assuring synergy between the structural policy, employment
policy and development policy of rural areas and the fisheries policy.
One of the specific horizontal objectives of NSRF, which determines the main objectives and de−
velopment priorities of Poland with respect to cohesion policy is balancing development opportunities
and assisting structural changes on rural areas. In the years 2007−2013 making use of the non−agricul−
tural development potential of rural areas would involve resources and instruments of the cohesion
policy. They would be directed at supporting the competitive power of particular regions, in adaptation
to their internal potential and own development strategy, as well as balancing differences in the develop−
ment level and in conditions that occur inside regions, especially in relations town−village, both with
respect to technical infrastructure and in the social sphere. This situation concerns considerable areas
of eastern and northern Poland, including especially rural areas, areas of former state run farms and
areas which are dependent on fishery.
An important direction in support coming from resources of the cohesion policy would be assisting
structural changes based on retraining of persons coming from agriculture, supporting and promotion of
entrepreneurship, as well as supporting the development of non−agricultural functions of villages
(including areas dependent on fishery). Important spheres in this context shall be towns, which will play
the role of service centres for rural areas.
Pursuant to Council Regulation (CE) No. 1698/2005 of 20 September 2005 concerning support for
development of rural areas by the European Agricultural Fund for Rural Development (EAFRD)55
(hereinafter: Council Regulation No. 1698/2005) and on the basis of Council Regulation (CE) No. 1198/
2006 of 27 July 2006 concerning the European Fisheries Fund (EFF)56 (hereinafter: Council Regulation
No. 1198/2006), as well as taking into consideration results of an analysis of the social, economic and
environmental situation, defined were priorities and directions for development of rural areas and the
fishery policy in Poland in relation to Community priorities. To enable supplementing the list of measures
indispensable from the viewpoint of needs of villages and the agricultural sector, as well as fishery,
a better coordination becomes necessary of instruments within the remaining Community policies,

55
Official Journal EU L 277 of 21 October 2005
56
EU Official Journal L 223 of 25 August 2006

95
 including in particular the cohesion policy and involvement of state budget resources within national
contribution support.
The concept of multifunctional development of rural areas is a basis for delivery of the National
Strategic Plan for Development of Rural Areas for the years 2007−2013, a basic strategic document
in Poland which reflects provisions of Strategic Community Guidelines in the subject scope (RDSG)57.
This concept assumes economic support for farms and improvement of competitiveness in the agricul−
tural and food product sector, with simultaneous assurance of instruments in support of differentiation
of business operation towards alternative income sources for inhabitants of rural areas. This would
contribute to improvement of the living quality on rural areas through development of the services sec−
tor, and in addition would create an alternative for the presently dominating role of rural areas, i.e.
agricultural production. Apart from economic functions an equally essential aspect of development of
rural areas in Poland is their role in preservation of landscape values and nature resources – preservation
of a good ecological condition of water and soil, variety of habitats and biological diversity, as well as
cultural heritage in villages.
The initiative of a multi−functional development of rural areas remains complementary towards the
concept of supporting structural changes on rural areas, proposed within the cohesion policy for the
years 2007−2013, which is implemented within NSRF.
Objectives of the Strategy of Fisheries Development for the years 2007−2013 are fully coherent
with objectives of the EU Common Fisheries Policy, taking particularly into consideration rationalisation
of the fishery sector through adaptation of outlay and fishing ability, development of aquaculture sector
and fish processing industry and market, as well as development of the coastal area. To assure devel−
opment of fishery in the years 2007−2013 and delivery of strategic objectives of the policy in this scope
it is necessary to undertake measures in support of balanced usage of fishery resources, development
and growth of competitiveness of this sector particularly taking into consideration human capital and the
territorial dimension of the fishery policy.
The complex formulation of problems related to the development of the fishery sector and of coast−
al regions dependent on it contained in the Fishery Development Strategy for the years 2007−2013
is supplemented by measures proposed within the cohesion policy implemented within NSRF, including
especially by supporting modernisation of the economy, creation of new work places or training of
human capital, which allows requalifiation and taking up competition n the labour market outside the
fishery sector.
Coordination of functioning of structural funds and of the Cohesion Fund with structural instru−
ments of the Common Agricultural Policy and the Common Fishery Policy (implementation, monitoring,
periodical evaluations) will be assured within the NSRF Coordination Committee (NSRF CC), thanks to
participation in it of representatives of Managing Authorities for the Development Programme of Rural
Areas and OP Sustainable development of the fishery sector and coastal fishing areas. Cooperation
of institutions covers stages of programming, implementation, monitoring, as well as control and evalu−
ation of implementation with respect to measures in support of development of rural areas and areas
dependent on fishery. Within this cooperation, during programming stages representatives of the Minis−
try of Agriculture and Rural Development participated in preparation of NSRF, in the part concerning
rural areas and areas dependent on fishery (objective 6 of NSRF, diagnosis of rural areas and areas
dependent on fishery). Through common working meeting it was possible to work out a common
approach of particular cohesion policy operational programmes to issues of support for rural areas and
areas dependent on fishery. In a similar way the Ministry of Regional Development participated in
reviewing projects of the National Strategic Development Plan of Rural Areas and Rural Areas Development

57
Decision of the Council of 20 February 2006 concerning strategic Community guidelines for rural areas development (programming period 2007−
2013), EU Official Journal L 55 of 25 February 2006

96
Programme as regards their consistence with NSRF provisions related to rural areas. In NSRF CC
representatives of both ministries will be participating in works of monitoring committees or other bodies
appointed within NSRF implementation systems, European Agricultural Fund for Rural Development
(EAFRD), EFR and, as regards impact on the above mentioned responsibility areas, in issuing opinions
concerning annual reports on implementation of appropriate operational programmes. In justified cases
representatives of the Minister of Agriculture and Rural Development may participate in sessions of the
Monitoring Committees for Regional Operational Programme. A detailed description of tasks of the
Committee has been presented in chapter 9: Implementation system.
National operational programmes of the cohesion policy, Common Agricultural Policy (Rural Areas
Development Programme) and Common Fishery Policy (OP Sustainable development of the fishery
sector and coastal fishing areas) comprise the following common intervention areas, directed at devel−
opment of rural areas and areas dependent on fishery:
• development of transport infrastructure (road infrastructure),
• development of environment protection infrastructure (water supply and sewerage sys−
tems, municipal wastes management, monitoring the condition of the natural environment and its
protection – plant and animal species, including Natura 2000 areas, management of water
resources – land drainage systems),
• development of energy infrastructure (production, transmission and distribution of electric
power and energy from renewable sources),
• development of social infrastructure (social, cultural, monumental, tourist and sport infra−
structure),
• development of human resources (training courses, professional advancement and requalifi−
cation),
• assisting structural changes (through support for enterprises and commencement of business
operation – establishment and development of new enterprises, investments in enterprises and
their modernisation, promotion of entrepreneurship).
Identification of the above specified areas led to a necessity of working out the so−called demarca−
tion line to limit implementation of given types of projects to particular operational programmes. The
demarcation was defined using appropriately selected criteria, the application of which will define the
place of realisation (operational programme) of the given project:
• meritoric criteria – which define the type of project (type, scope of assistance, location),
• financial criteria – which define the value (cost) of the project,
• beneficiary’s criteria – which define the type of entity relevant for received support for imple−
mentation of the given project.
It was assumed that the basic criterion for demarcation is the project value, according to which
projects with higher costs would as a rule be implemented within cohesion policy programmes. In special
cases it was necessary to supplement the demarcation by the remaining criteria. This concerns in par−
ticular the Development Programme of Rural Areas and OP Sustainable development of the fishery
sector and coastal fishing areas, in which implementation of projects was additionally limited territorially,
appropriately to rural areas and areas dependent on fishery. Where necessary demarcation was
supplemented by the criterion of project beneficiary.
The application of adopted solutions would render impossible concurrent implementation of the
same project within different operational programmes of the cohesion policy, Common Agricultural Policy
and the Common Fishery Policy.

97
 9. INSTRUMENTS FOR EXECUTION OF NSRF OBJECTIVES

Apart from measures of a legal, fiscal and institutional nature, NSRF objectives would be executed
through programmes and projects co−financed by such structural instruments as:
• Operational Programme Infrastructure and Environment (OP I&E) – ERDF and CF
• Operational Programme Innovative Economy (OP IE) – ERDF
• Operational Programme Human Capital (OP HC) – ESF
• 16 Regional Operational Programmes (ROP) – ERDF
• Operational Programme Development of Eastern Poland (OP DEP) – ERDF
• Operational Programme Technical Assistance (OP TA) – ERDF
• Operational Programmes of European Territorial Cooperation (OP ETC) – ERDF
The above mentioned operational programmes would be managed on the national level, while
ROPs shall be managed on the level of 16 regions. Diagram 2 presents instruments of NSRF execution.
All programmes form the elementary operational level of NSRF. Hence they are going to contribute
to execution of the strategic objective and specific horizontal objectives defined in this document, as well
as guidelines adopted in CSG. Execution of specific objectives within NSRF requires adopting a coordi−
nated approach in at least two or more operational programmes. Owing to their specific nature, each of
the particular programmes would be contributing to implementation of specific objectives but it would be
taking place at varying extent and different scope.
Implementation of Objective 1 Improving the functioning standard of public institutions and devel−
opment of partnership mechanisms was reflected both in contents of operational programmes, and in
the process of their development as well as in the planned implementation system. Including represent−
ative partners to various programming stages, placing emphasis on transparency and social accept−
ance make all operational programmes development elements of partnership mechanisms. The main
burden of implementation of Objective 1 lies, on the other hand, on OP HC, within which planned is
implementation of projects that enhance the potential of government administration as regards applying
high quality legal regulations and effective management of public finance, support directed at
improving the functioning effectiveness of local administration and that of regional level. A necessary
element for achievement of Objective 1 of NSRF will be not only enhancing and development of the
justice administration potential, in particular the justiciary and improvement of provided services, but
also support for the potential of non−government organisations as regards the capability of implementing
public tasks. Indirectly OP TA through assuring support of NSRF implementation system this programme
is covered by implementation of Objective 1.
Implementation of Objective 2 Improving the human capital quality and enhancing social cohesion
covers mainly measures anticipated in OP HC taking into account support areas of ESF. Additionally
Objective 2 will be supplemented by investments in the development of highest class academic centres
that educate specialists in modern technologies and enhancing the quality of education by making use
of information and communication technologies within OP I&E, as well as OP IE On the regional level
within ROP investments will be made in educational structure, projects related to health protection and
informatic infrastructure to enhance accessibility to a wide information spectrum.
Objective 3 of NSRF Establishment and modernisation of technical and social infrastructure crucial
for better competitiveness of Poland will be achieved on the basis of implementation of OP I&E, ROP
and OP DEP. Within OP I&E support would be focused fist of all on the development and modernisation
of the elementary technical infrastructure that comprises road, railway, sea and inland transport. Anoth−
er priority will be investments related to energy infrastructure and its effectiveness, as well as support for

98
the development of the energy industry based on renewable energy sources. The development of ele−
mentary technical infrastructure will be accompanied by investments which are to assure an appropriate
quality of the natural environment according to principles of sustainable development. In addition sup−
port would be directed at improving educational possibilities on the level of university education, devel−
opment of cultural institutions and assuring health protection services to the inhabitants. Means of OP IE
would be used to implement undertakings aimed at strengthening the infrastructure of scientific and
research centres to execution of high quality research for needs of the economy. Furthermore support
will also be granted to centres of priority rank which from an appropriately prepared and equipped infra−
structure for functioning of enterprises oriented at innovativeness and making use of new technologies.
ROP will provide support for infrastructure that creates appropriate conditions for running enterprises
oriented at the development of low innovativeness, contributing to the development of cooperation be−
tween them and to establishment of regional potential. One of the main elements of competitiveness
development will be extensive support for establishment of broadband access to the Internet.
Objective 4 of NSRF Improving the competitiveness and innovativeness of enterprises, including in
particular the manufacturing sector with high added value and development of the services sector will be
to a large extent implemented within OP IE, where means shall be allocated to strengthening growth
locomotives, i.e. innovative enterprises through establishment of institution related conditions for their
development, including development of an information society. In implementation of Objective 4 invest−
ment components complementary to OP IE, related to granting support to regional innovativeness,
elementary services, as well as tourism, will be executed within ROP and OP DEP, and in the event of
tourism – also in OP I&E. Support for the development of human resources for innovative economy will
be executed within OP HC, among others within enhancing adaptation capabilities of personnel, life−
long learning, adaptation of employees to functioning in conditions of economic changes, supporting
entrepreneurship attitudes.
All programmes are included in implementation of Objective 5 Increase of the competitiveness of
Polish regions and preventing their social, economic and territorial marginalisation. Main emphasis in
implementation of this objective has been placed on measures within 16 ROP. Increase in competitive−
ness of Polish regions and counteracting their marginalisation in the years 2007−2013 would be made
possible by projects inter alia from the transport sector connected with establishment and modernisation
of the road, railway and air transport infrastructure, measures related to health protection (to improve
the medical care standard), communication infrastructure (to improve spatial mobility and accessibility
to specialist services provided only in major urban centres of the region), investments in water supply
systems, disposal and treatment of sewage, modernisation of energy systems, assuring ecological and
flood prevention safety systems. Apart from them support will be financed for small and medium enter−
prises, especially with respect to innovative operation, including R&D, leading to enhancing their poten−
tial, support for promotion of products and services tourism development and culture infrastructure.
Financial projects financed from ERDF will be supplemented by tasks related to ESF within OP HC,
where over a half of all means within this fund will be directed at the regions.
Similarly as in Objective 5 – projects within particular operational programmes will be contributing
in a direct or indirect way to implementation of Objective 6 Balancing growth opportunities and supporting
structural changes on rural areas.
An estimated division of means assigned to disbursement within NSRF between various horizontal
objectives has been presented in table 8.

99
 Table 8. Estimated division of means assigned for disbursement within NSRF between particular
horizontal objectives.
Strategic objectives of NSRF Weight
Objective 1 Improving the functioning standard of public institutions
and development of partnership mechanisms 4%
Objective 2 Improving the human capital quality and enhancing social cohesion 10%
Objective 3 Establishment and modernisation of technical and social infrastructure crucial
for better competitiveness of Poland 42%
Objective 4 Improving the competitiveness and innovativeness of enterprises,
including in particular the manufacturing sector with high added
value and development of the services sector 22%
Objective 5 Increase of the competitiveness of Polish regions and preventing their social,
economic and territorial marginalisation 22%
Objective 6 Balancing growth opportunities and supporting structural changes on rural areas
Total 100%

Operational programmes have been prepared in such a way that they should mutually supplement
the measures to be undertaken. The complementariness is to prevent doubling of undertakings. The
application of complementariness is manifested on two levels, i.e.: operational programmes of the
national level and regional operational programmes and complementariness on the level of operational
programmes. Consequently the main areas of intervention within OP I&E would be complementary first
of all to implemented transport, environmental, energy, culture and health investments implemented local−
ly and regionally within ROP, as well as transport investments and those related to the social infrastructure
within OP DEP. Simultaneously with undertakings executed within OP IE with respect to supporting entre−
preneurship and e−administration planned is also execution of projects co−financed within OP HC. Further−
more, measures directed on developed of information society within OP IE, would be supplemented by
measures in this scope undertaken within OP I&E, while as regards supporting entrepreneurship
of a regional rank – in ROP. Measures concerning human capital on the national level within OP HC
would be complementary with measures aimed at adaptation to the situation on the regional labour
market within the regional component of OP HC. As for measures of technical assistance in all programmes
they would be consistent with OP TA and would be its supplementation and particularisation.
Pursuant to provisions contained in art. 37 of Council Regulation No. 1083/2006, operational pro−
grammes will be also provided with an indicative list of major projects, which will be subject to evaluation
by the European Commission. An additional document used for implementation of operational pro−
grammes will be an indicative list of individual key projects, which is to facilitate achievement
of assumed development objectives and which would allow determination and coordination of the most
important investments executed using structural funds and the Cohesion Fund. Including projects on the
list would be a certain type of a project pipeline, which is to facilitate implementation of the operational
programme. However, implementation of those projects would depend on fulfilling criteria approved by
the Monitoring Committee and on approval of the project to be co−financed by the Managing Authority.
Those strategic, formal and Meritoric criteria (including preparation of necessary documentation and
readiness of deployment) should be identical for all potential beneficiaries of all projects concerning
a specific category of operations in an operational programme.
The system of operational programmes for the years 2007−2013, as well as the way of their imple−
mentation results from experience gained during the programming period of 2004−2006, as well as from
new EU regulations.

100
 Limiting the number of centrally managed programmes and centralisation of the management
of those programmes would allow the elimination of problems that appear during the programming
period of 2004−2006. Reduced number of programmes would in turn limit problems connected with
doubling of measures and would enhance complementariness of granted aid. To eliminate possibilities
of overlapping interventions in particular operational programmes co−financed from structural funds and
form the Cohesion Fund, an operational document was prepared called “Demarcation line between
Regional Operational Programmes and Operational Programmes on the central level”. This document
has also defined demarcation lines that set out the division of interventions between operational
programmes of the cohesion policy and operational programmes of the Common Agricultural Policy and
the Common Fishery Policy.
The centralised management system, which limits substantially the number of institutions directly
responsible for programme execution, would allow increasing the management process effectiveness.
Centralisation of the management system is to allow a more effective coordination of the management
and control system preparation process for conformity evaluation. Such a management system would
facilitate the development of harmonised descriptions for management and control systems for data of
operational programmes, as well as creation of a single document system (manuals with processes,
instructions and application templates).
Development of a major OP I&E, which covers a lot of mutually interdependent sectors, such as for
example transport, environment, power industry, would facilitate withdrawal from application of a sector
oriented approach in favour of horizontal strategic approach, which allows better advantages for the
Polish economy and the economy of the entire EU (especially in the context of technical infrastructure).
Clearly defined strategic objectives could be executed in more effective and complementary way on the
basis of sectoral investments coordinated by a single managing authorities. The horizontal approach will
limit problems connected with allocation of funding within particular sectors by setting out a clear hierar−
chy of growth priorities. Furthermore, supervision over execution of infrastructural investments in many
sectors by a single managing authority creates an opportunity of better adherence to horizontal Commu−
nity provisions, especially in the context of environmental impact assessment.
An element of the operational programmes execution system of particular significance is assuring
appropriate administrative abilities. Development of a single major operational programme would
enable applying for new tasks the administrative abilities and experience of staff in an institution operating
in the programming period of 2004−2006. As for the sectors related to the environment and transport,
such a measure makes possible the utilisation of the existing structures with simultaneous assignment
of a bigger number of duties and a broader scope of responsibility. Limiting the number of managing
authorities in favour of increasing the number of intermediate bodies in connection with the establish−
ment of a major operational programme would facilitate fulfilling requirements connected with achievement
of adequate management and control standards.
Taking into consideration the scale of needs, both with respect to transport infrastructure,
environment and others, the execution of which is planned in OP I&E, for effective execution of
tasks within this programme allocated were 41.9% of entire structural funds within NSRF. Further−
more, expenditure indicators for implementation of the Lisbon Strategy objectives will be achieved
successively through concentration of funds coming from the Community contribution pursuant to
the below provisions: for measures aimed at achieving cohesion of the national transport system
with the European system, which is indispensable for economic growth, first of all through develop−
ment of transport structure with a transnational range, according to principles of sustainable devel−
opment. Within the programme support would be granted to investments of key importance for
preserving and improving the environment state. Environment issues connected with sustainable
development would also gain particular importance thanks to two−directional arrangement of invest−
ments in the energy industry: on the one hand necessary investments aimed at diversification

101
 of traditional energy sources, which cannot be implemented with the use of market mechanisms,
and on the other hand investments in renewable energy sources, reducing energy intensity and in
other ways environment friendly. Investments for selected areas of key supraregional importance
related to social infrastructure (health protection, culture, higher education) would be complementary
in relation to those areas.
For the past few decades years Poland has been consistently implementing the process of eco−
nomic transformations in a direction assuring hastening a lasting and sustainable development. Rapid
economic growth was possible to a large extent thanks to utilisation of comparative dominance in the
form of cheap and quite well educated manpower, as well as entrepreneurship attitudes which were
available in the first period of transformations. This simple development source has nevertheless been
already fully used, and so it is necessary to create new dominance sources based on innovations. For
this purpose adopted was the concept of implementation of a single major programme on a national
level − OP IE. The conclusion was made that within a single OP IE there is justification both for increas−
ing the investment level in enterprises, creation of institutional conditions – facilitation of cooperation
between enterprises and the research and scientific sphere, as well as direct support of scientific and
technical centres in implementation of research in areas considered as a Polish specialty in the European
and global dimension and increasing accessibility of capital for implementation by companies invest−
ments with the biggest development potential.
It was also presumed that within OP IE the highest performance indicators would be achieved
of the Lisbon Strategy objectives. 12.4% of all structural funds have been allocated for OP IE. As for the
Lisbon Strategy, the OP IE programme would be focused on strengthening abilities of generating inno−
vations through raising investments in the R&D sphere directed at market needs, development of coop−
eration between R&D and enterprises, as well as dynamisation of the entrepreneurship potential through
introduction of complex tools for counselling and financial support for new enterprises and in the first
stage of development and expansion and corporation cooperation.
For a major OP HC its establishment depends among others on introduction of the mono−funding
principle, in the programming period of 2007−2013. Combining of all spheres supported by ESF and
concentrating all funds within one programme – which comprises two components: a central and
a regional one – results from the necessity of assuring a coherent system of ESF implementation in
Poland. Establishing of one managing authority would in a considerable way facilitate monitoring delivery
of programme, allowing at the same time an immediate response in the event of potential problems
connected with its introduction.
The adopted concept would lead to withdrawal from sectoral type of thinking in favour of achieve−
ment of programmed objectives and results. Appointment of a single management institution for all
resources within ESF would enable improving the synergy of results of support granted to similar spheres
(labour market, staff adaptativeness, improvement of quality and access to education) and complemen−
tariness of undertaken measures. Support for the education sector implemented within OP HC thanks to
coordination with the remaining spheres would allow achieving better results and quicker reaction in the
context of adaptation of quality and directions to changing demand on the labour market.
The scale of social problems, indicated in the diagnosis, and the justified need of implementation of
the two components within a single major programme has indicated the necessity of designating 14.6%
structural funds for delivery of undertakings co−financed from ESF. At the same time it should be borne
in mind that a significant part of funds within the programme would be concentrated on achievement of
indicators of expenditures made on implementation of the Lisbon Strategy objectives. OP HC would be
contributing first of all to supporting enterprises and their employees with respect to adaptation abilities
to consequences of social and economic transformations connected with globalisation and restructuring
processes which would depend inter alia on accessibility of the lifelong learning system and participating
in it of employees and persons in a disadvantageous situation.

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 Establishment of OP DEP results from granting for the years of 2007−2013, within the convergence
objective of additional resources within ERDF for five poorest regions, which have the lowest GDP per
capita in the expanded EU−25. Those regions include five voivodships of Eastern Poland: lubelskie,
podkarpackie, podlaskie, świętokrzyskie i warmińsko−mazurskie. The areas have a low living standard
of the inhabitants, low dynamics of economic growth, insufficiently developed and incorrectly directed
communication infrastructure and insufficiency of growth factors. Effective counteracting those threats
and reversal of disadvantageous trends requires support of the state and making use of instruments
provided by the EU cohesion policy. Bearing the above mentioned premises in mind a decision was
taken to develop OP DEP, which would be a special support instrument for development processes in
voivodships of Eastern Poland. The range of OP DEP overlaps with scope of operation of other pro−
grammes, but differs by narrowing of its scope to selected fields, which take into consideration the scale
of measures and the expected long−term results that may affect development processes. Within OP
DEP important investments and undertakings would be delivered, which would create a basis for initia−
tion of processes for lasting development of voivodships of Eastern Poland. The value of resources
designated for implementation of this programme (3.4% granted structural funds) results first of all from
a decision taken by the European Commission concerning support for the poorest EU−25 regions.
A justification for preparation and delivery of 16 ROP is programming decentralisation for growth
of regions, increasing the degree of effectiveness in executing development measures by public admin−
istration, enhancing the citizen and self−government dimension, as well as effective utilisation of struc−
tural resources for the period of 2004−2006 within IROP. The ROP objectives are on the one hand
defined in relation to voivodship development strategies, and on the other hand are included in objec−
tives of NSRF. The elementary objectives of ROP are related to improving competitiveness in particular
regions and promotion of balanced development. Those objectives are achieved through integrated
impact on establishing conditions for employment growth and growth of investments on a regional and
local level. Measures specified in ROP are coordinated with measures undertaken within the remaining
operational programmes, and cover a wide variety of issues. Spatial differentiation and the specific
nature of particular geographical areas had been taken into account on the stage of programming
16 ROP in two ways: in the form of increased transfers (per capita) of external public resources (coming
from the EU) for voivodships with the lowest level of GDP per capita and the highest unemployment rate
(algorithm of allocation of available funding among voivodships), within the defined list of priority axes
and possibilities of designating by voivodships of appropriate values of granted resources – depending
on the scale of problems and own development strategy. It is assumed that each ROP would have
a similar arrangement, while their contents (including contents of undertakings) and financial resources
would be defined on the regional level. The necessity of harmonising the list of measures delivered
within ROP results from a few premises. The most significant ones include assuring cohesion between
a regional approach to development issues and objectives and priorities of national and European strat−
egies, including in all ROP measures that concern state aid for SMEs, for which uniform criteria for aid
granting would be determined on the national level. Yet such an approach does not rule out delivery
of priorities within ROP, which are specific for particular voivodships. Programming within ROP would
include funding for measures connected with residential housing, made available within art. 7.2 of the
Regulation (CE) of the European Parliament and the Council of Europe No. 1080/2006 of 5 July 2006
concerning the European Regional Development Fund and repealing Regulation (CE) No. 1783/199958
(hereinafter Council Regulation No. 1080/2006). A maximum of 3% of ERDF allocation for each of the
16 ROP projects in the scope of residential housing conform to requirements posed in relevant regula−
tions. Those measures would be complementary to undertakings contained in ROP related to municipal
areas threatened by degradation and social exclusion. Such a solution, despite a regional level of planning

58
EU Official Journal L 210 of 31 July 2006.

103
 and delivery – would be a component of measures connected with improvement of the housing situation
taken into consideration by the state housing policy.
Within implementation of indicators related to achievement of objectives of the Lisbon Strategy
particular ROP would be modelling the structure and value of support complementary to measures
planned within OP IE appropriately to their development needs. Their challenge would be first of all
increasing the dynamics of entrepreneurship potential and development or intensification of regional inno−
vativeness potential. 24.9% of all resources within structural funds would be spend on delivery of ROP.
The scale of resources coming from structural funds in the years 2007–2013 would require signif−
icant financial outlays on assuring efficient operation of the management system, implementation sys−
tem (including costs of development of key projects), monitoring, informing, control and evaluation
of structural assistance. Furthermore, handling this system necessitates involving high administrative
resources in the form of personnel in managing and intermediate institutions motivated by an appropri−
ate remuneration level. For this reason technical assistance was determined as one of the operational
programmes, for which designated were 0.8% of all structural resources within NSRF. This programme
has been established to assure resources and instruments aimed at financing and handling the delivery
process of NSRF. A superior task of OP TA is assuring efficient and effective course of delivery of NSRF
and achievement of full absorption of structural fund resources granted for the years of 2007–2013.
The concept of delivery of the above mentioned programmes is also affected by the Community
legal system, which is undergoing changes in the years 2007−2013. As regards application of regula−
tions concerning state aid, it imposes on Poland the necessity of adapting Polish regulations which are
a legal basis for granting state aid and which define conditions and methods of granting state aid, which
means amendment of the existing or development of new legal acts. First of all this concerns the appli−
cation of a new regional support map as of 1 January 2007 in all places where support is granted on the
basis of this map (regional aid, support for small and medium enterprises, support for jobs) and taking
into consideration maximum intensity of such aid in the planned aid programmes.
For operational programmes, whose planned support is covered by rules of state aid, i.e. OP IE,
OP I&E, OP HC, OP DEP and 16 ROP, aid schemes shall be developed. MRD is carrying out works over
development of new aid schemes and adaptation of the presently binding ones.
Solutions applied for particular operational programmes are based on new regulations related to
state aid and related mainly to group exclusions, with respect to which the European Commission pro−
poses the biggest changes. This solution would in particular be used in preparation of Regulations as
support programmes for granting of state aid on the basis of group exclusions within ROP. For ROP
separate regulations would also be worked out to allow granting de minimis aid with respect to state aid
for R&D+I activity, in favour of natural environment protection and for state aid in the sphere of trans−
port. However, it is not ruled out that separate Regulations would be prepared to include a separate
nature of aid. The obtained catalogue of projects which may be aided within state aid scheme would
be then submitted to ROP Managing Authorities for use as a kind of specific menu for preparation
of relevant aid schemes, pursuant to actual needs of a voivodship, within ROP. Coordination of the
development of Regulations related to support within ROP on the central level by the Ministry
of Regional Development would eliminate the necessity of particular regions having to work out their
separate legal acts in this respect.
Managing Authorities will ensure that any assistance from public means within NSRF will be granted
pursuant to relevant regulations and procedures as regards state aid applicable at the time when
assistance is granted from public means.

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 Diagram 2. Horizontal objectives of NSRF and instruments of their delivery

COHESION POLICY

STRATEGIC OBJECTIVE of National Strategic Reference Framework for the years 2007−2013

Creation of conditions for better competitiveness of knowledge and entrepreneurship based economy which is to assure employment
growth and growth of the level of social, economic and spatial cohesion
FISHERY POLICY
POLICY / COMMON
AGRICULTURAL
COMMON

HORIZONTAL OBJECTIVES of National Strategic Reference Framework for the years 2007−2013

Improving the Improving Establishment Improving the Increase of the Balancing

functioning the quality and modernisation competitiveness competitiveness growth
standard of human capital of technical and innovativeness of Polish regions opportunities
of public and enhancing and social of enterprises, and preventing and supporting
institutions social cohesion infrastructure including in their social, structural
and development crucial for better particular the economic changes on rural
of partnership competitiveness manufacturing and territorial areas
mechanisms of Poland sector with high marginalisation
added value and
development of
the services sector

OPERATIONAL PROGRAMMES for implementation of National Strategic Reference Framework for the years 2007−2013

Human Capital Human Capital ROP ROP

Infrastructure Innovative
Technical Technical Development Development
and Environment Economy
Assistance Assistance of Eastern Poland of Eastern Poland
Innovative Economy ROP Human Capital Human Capital Human Capital
Innovative Economy
ROP Development Infrastructure
of Eastern Poland and Environment Infrastructure Infrastructure
Infrastructure ROP and Environment and Environment
and Environment Innovative Economy ROP
Development Infrastructure Development Innovative Innovative
Human Capital Economy Economy
of Eastern Poland and Environment of Eastern Poland

105
 10. IMPLEMENTATION SYSTEM

The Polish government, represented by the Council of Ministers, bears general responsibility for
implementation of objectives set out in NSRF with the use of instruments of their implementation that
result from EU regulations, agreed with the European Commission. In issues related to NSRF the Coun−
cil of Minister is represented by the minister relevant for issues of regional development.

10.1. Coordination System

10.1.1. NSRF as element of execution of the development policy in support of growth and jobs
The elementary document that defines objectives of the growth policy in Poland in the years
2007−2015 is the National Development Strategy (NDS). It defines provisions and sets out institution−
al framework for coordination in execution of various horizontal policies, comprised by the develop−
ment policy – in particular those which are mainstays of the European financial perspective in the
years 2007−2013: competitiveness policy, cohesion policy, Common Agricultural Policy and the Com−
mon Fishery Policy.
In the light of objectives set up by the entire EU during the summit in Brussels in March 2005,
of particular importance is assuring appropriate coordination in execution of medium−term objectives
and instruments of the cohesion policy defined in NSRF and NDP. To assure coordination, the minister
relevant for issues of regional development would be monitoring the level of expenditures borne in
connection with implementation of the cohesion policy, to be used for implementation of the Lisbon
Strategy.

10.1.2. Coordination in relation to NSRF

Coordination related to execution of Objective 1 and Objective 3 of the cohesion policy, NSRF and
implementation of all programmes implemented in Poland and on its borders is the responsibility of the
minister competent for issues of regional development. Minister of regional development executes
supervision over correct functioning of the NSRF implementation system, and is also responsible for
execution of evaluation studies at the level of NSRF, including horizontal studies and supplementing
and ad hoc research, resulting from monitoring implementation of NSRF.
As regards regional operational programmes, the coordinating role is fulfilled by the minister com−
petent for issues of regional development. Consequently a specially assigned organisational unit is
responsible especially for:
• verification of draft operational programmes as regards their conformity with NSRF,
• negotiation of operational programmes with the European Commission in cooperation with man−
aging authorities of ROP,
• assuring cohesion of applied guidelines,
• monitoring effects of implementation of ROP in particular regions (comparative analyses).
To assure effective current coordination of NSRF implementation, the team appointed by the Prime
Minister, headed by the minister competent for issues of regional development, the which would com−
prise representatives of all Managing Authorities and Intermediate Bodies for the operational programmes
and ministers responsible for particular spheres covered by the operational programmes, minister
competent for public finance, President of the Office of Competition and Consumer Protection, President
of the Central Statistical Office and President of the Public Procurement Office.

106
 Tasks of the team shall comprise current monitoring of the implementation status of operational
programmes (including compliance to “n+2”/n+3” rule) and taking resultant decisions, especially those
concerning working on necessary legal, institutional and procedural changes.
Correct implementation of the function executing the function of horizontal policy coordination,
as well as strategic monitoring and evaluations of NSRF execution, necessitates the appointment
of a Coordination Committee (CC) headed by the minister competent for regional development,
comprising representatives of ministers involved in execution of particular operational programmes
and institutions that manage regional operational programmes, minister competent for public
finance, minister responsible for coordination of the Lisbon process in Poland, and minister respon−
sible for implementation of the Common Agricultural Policy and the Common Fisheries Policy.
In works of the CC also to participate are representatives of Polish associations of territorial self−
government units and representatives of social and economic partners (organisations associated
in the Tripartite Commission for Social and Economic Issues, non−government organisations, repre−
sentatives of the academic and scientific milieu). Also representatives of the European Commission
and representatives of EIB and European Investment Fund may participate, with an advisory func−
tion, in works of the committee (EFI)59.
As regards coordination of horizontal policies, CC is to monitor execution of policies comprised
by the development policy, especially the competitiveness policy, cohesion policy, Common Agri−
cultural Policy and Common Fishery Policy. CC is to prepare opinions and recommendations con−
cerning the progress in implementation of horizontal policies to assure cohesive execution of the
growth policy.
CC shall basically hold meetings each six months and would be executing a periodical review
of the NSRF implementation status. Its tasks would comprise in particular the following:
• presenting to the minister competent for regional development recommendations concerning the
progress of NSRF implementation and of particular operational programmes on the basis
of reports and monitoring reports,
• presenting to the minister competent for regional development recommendations resulting from
evaluation studies,
• presenting to the minister competent for regional development conclusions and recommenda−
tions resulting from annual information concerning conformity of measures executed within oper−
ational programmes with relevant Community policies,
• issuing opinions for modifications of the NSRF implementation system and its rationalisation,
which result from the above mentioned analyses, reports and information presented by the
minister competent for regional development, in particular those related to possible shifting of
resources among operational programmes, as well as utilization of the national performance
reserve,
• issuing opinions concerning conformity of operations executed within national operational
programmes with operations executed within regional operational programmes,
• issuing opinions concerning conformity of operations executed within NSRF with measures
financed within the Common Agricultural Policy, Common Fishery Policy, and from funding of
other structural instruments.
Provisions of regulations for the years 2007−2013 will obligate member states to respect the principle
of female and male equality, and to include this principle into the main policy trends. In NSRF the
principle of gender mainstreaming would be introduced in each stage of implementation and would

59
Planned participation in the Committee of representatives of EIB and EFI would only concern issues connected with using possible credits or scope
and form of involvement of those institutions.

107
 cover all operational programmes. For this reason one of the main CC tasks would be monitoring the
application of this principle in all operational programmes.
CC would also be monitoring the application of sustainable development principle in implementation
of all operational programmes.

10.1.3. Coordination of operational programmes implementation on the regional level

Coordination between objectives of the growth strategy of a given voivodship, objectives and
implementation mechanisms on the regional level of various operational programmes of Objective 1 and
Objective 3 of the cohesion policy, the Common Agricultural Policy and – in relation to appropriate
regions – the Common Fishery Policy will be provided by the Voivodship Board, with the assistance of
the Monitoring Committee of the Regional Operational Programme (MC ROP). The composition and
tasks of MC ROP would be expanded in the rules of MC ROP apart from those, which result from the
role of MC, defined in Community regulations.
The basic coordination tasks comprise the following:
• monitoring the progress in implementation of all operational programmes covered by NSRF and
other growth programmes executed within the voivodship, including those co−financed from
EAFRD, EFF, EIB (including instruments of JESSICA, JEREMIE, JASPERS), Norwegian Finan−
cial Mechanism, European Financial Mechanism of the European Economic Area,
• evaluation of the conformity of executed programmes and projects with the growth strategy
for the voivodship,
• evaluation of the effectiveness of applied instruments within various programmes executed on
the area of the voivodship,
• monitoring the execution of horizontal policies, including especially objectives of the Lisbon Strat−
egy and horizontal policies on the voivodship area, and making recommendations for managing
authorities related to possible modifications of ongoing programmes that result from an analysis
of reports and other documents, including in particular evaluation studies.

10.1.4. Assuring cohesion between operational programmes executed in NSRF and operational
programmes co−financed by EAFRD, CFP and measures implemented by EIB and financial
instruments
To allow efficient and effective achievement of goals defined in NSRF it is necessary to coordinate
functioning of structural funds and the Cohesion Fund with structural instruments of the Common
Agricultural Policy, the Common Fishery Policy and EIB.
Such coordination would also be assured by participation in the composition and meetings of CC
representatives of the Managing Authorities for:
• Rural Areas Development Programme (minister relevant for issues of agriculture and minister
relevant for issues of rural development),
• Operational Programme Balanced development of the fishery sector and coastal fishing regions
2007−2013 (minister relevant for issues of agriculture),
• Financial Mechanism of the European Economic Area, Norwegian Financial Mechanism and the
Swiss Financial Mechanism (the minister relevant for issues of regional development),
• and operations of EIB (the minister relevant for issues of regional development and minister
relevant for issues of public finance).
Representatives of donators from countries of the European Economic Area and Switzerland, EIB
and other institutions of importance from the viewpoint of Committee operation objectives would be
invited to participate in sessions of the Committee.

108
 Apart from coordination, works of the Committee would also comprise measures aimed at assuring
cohesion between various programmes and instruments used to co−finance growth projects. Those
measures comprise:
• issuing opinions by the minister relevant for issues of regional development concerning comple−
mentariness of projects, programmes and proposals for their modifications within the scope
of the Common Agricultural Policy and the Common Fishery Policy with measures executed in
NSRF,
• participation of representatives of all the above mentioned ministers in works of monitoring
committees or other relevant bodies appointed within implementation systems of NSRF, EAFRD,
CFP,
• agreeing by the minister relevant for issues of regional development with the minister relevant
for issues of public finance proposals concerning obtaining loans and credits or other forms
of cooperation with EIB and international finance institutions (IFI) with respect to financing under−
takings covered by the cohesion policy,
• issuing opinions by relevant ministers – with respect to impact on the above specified scopes
of responsibility – of annual reports on implementation of particular operational programmes and
information on use of credits and other financial instruments from EIB and other IFI, and proposing
possible modifications of operational programmes,
• presenting by the minister relevant for issues of regional development to the Chairman of the
Council of Ministers annual information on the progress of coordination process with proposals of
necessary solutions aimed at its rationalisation.

10.2. Implementation System for the “Convergence” Objective

10.2.1. Management and Control

On behalf of the Council of Ministers, the minister relevant for issues of regional development is
responsible for the efficiency and effectiveness of operation of the management and control system for
operational programmes, defined pursuant to requirements of article 70 para 1 of the Council Regulation
No. 1083/2006.

10.2.1.1. Managing Authorities

The Managing Authority is responsible for preparation and implementation of operational
programmes (including ROP). The minister relevant for issues of regional development acts as Managing
Authority for centrally managed programmes, while the board authority of the particular voivodship is the
Managing Authority for regional operational programmes.
Tasks of the Managing Authority include first of all tasks determined in article 60 of the Council
Regulation No. 1083/2006. Furthermore, functions of Managing Authorities comprise also:
• assuring conformity of selected operation for financing with criteria of project selection for the
programme,
• assuring execution of control for the operational programme, including especially development
of a plan for system control and approval control plans of other institutions,
• making evaluations of programme implementation progress on the basis of an annual report,
• preparing, in cooperation with Intermediate Bodies, reports on irregularities and their submitting
to relevant institutions.

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 Table 9. Managing Authorities for OP and ROP in the years 2007−2013.

Operational Programme Managing Authority

OP Infrastructure and Environment
OP Innovative Economy
OP Development of Eastern Poland
OP Technical Assistance
OP Human Capital
ROP for Dolnośląskie Voivodship
ROP for Kujawsko−Pomorskie Voivodship
ROP for Lubelskie Voivodship
ROP for Lubuskie Voivodship
ROP for Łódzkie Voivodship
ROP for Małopolskie Voivodship
ROP for Mazowieckie Voivodship
ROP for Opolskie Voivodship
ROP for Podkarpackie Voivodship
ROP for Podlaskie Voivodship
ROP for Pomorskie Voivodship
ROP for Śląskie Voivodship
ROP for Świętokrzyskie Voivodship
ROP for Warmińsko−Mazurskie Voivodship
ROP for Wielkopolskie Voivodship
ROP for Zachodniopomorskie Voivodship
minister relevant for issues of regional development
minister relevant for issues of regional development
minister relevant for issues of regional development
minister relevant for issues of regional development
minister relevant for issues of regional development
Board of the Dolnośląskie Voivodship
Board of the Kujawsko−Pomorskie Voivodship
Board of the Lubelskie Voivodship
Board of the Lubuskie Voivodship
Board of the Łódzkie Voivodship
Board of the Małopolskie Voivodship
Board of the Mazowieckie Voivodship
Board of the Opolskie Voivodship
Board of the Podkarpackie Voivodship
Board of the Podlaskie Voivodship
Board of the Pomorskie Voivodship
Board of the Śląskie Voivodship
Board of the Świętokrzyskie Voivodship
Board of the Warmińsko−Mazurskie Voivodship
Board of the Wielkopolskie Voivodship
Board of the Zachodniopomorskie Voivodship

10.2.1.2. Intermediate Bodies

Pursuant to article 59 of the Council Regulation No. 1083/2 the Polish party has appointed Interme−
diate Bodies for particular operational programmes to allow execution of a part of tasks of the Managing
Authority according to specific priority axes. When effecting such a delegation, the Managing Authority
keeps nevertheless complete responsibility for entire implementation of the programme. The delegation
takes place pursuant to an agreement concluded between the Managing Authority and the Intermediate
Body, which describes in detail the scope of tasks of the Intermediate Body and the resultant rights and
obligations of both parties to the agreement. The scope of the task delegation would be determined on
a case by case basis for each programme in relation to the given priority axis (or groups of priority axes).
The selection of Intermediate Bodies on the level of government administration bodies is done
pursuant to the act dated 4 September 1997 on divisions of government administration authorities
(Dz. U. from 2003 No. 159, item 1548 as later amended) and the competencies of particular ministers
specified in it. Ultimate establishment of an Intermediate Body takes place pursuant to a resolution
passed by the Council of Ministers which adopts the operational programme.

10.2.1.3. Second level Intermediate Bodies

In some operational programmes a necessity will arise of delegating certain functions of Intermediate
Bodies to other institutions, the so−called Second level Intermediate Bodies. In Poland such an institu−
tion would be responsible for implementation of particular measures (operation groups), in which imple−
mentation should be understood as a set of activities executed in connection with realisation of specific

110
projects, such as selection of projects (pursuant to financing criteria of operations approved by the
Monitoring Committee) to be implemented, supervision of their implementation, verification of applica−
tions coming from the beneficiary).

10.2.1.4. Certifying Authority

Certification of payments to the European Commission would be taking place through the Certifying
Authorities operating in structures of the minister relevant for issues of regional development. Within its
functions the Certifying Authority will be functionally autonomous of Managing Authorities.
As regards the executed functions, the Certifying Authority is a unit autonomous from other units
that execute the functions of managing authorities. Within Regional Operational Programmes the Certi−
fying Authority delegates a part of its tasks related to certification to Voivodship Authority Bodies that act
as the so−called Intermediate Bodies in Certification, in which the Certifying Authority retains its respon−
sibility for the delegated tasks, pursuant to art. 59 par. 2 of the Council Regulation (CE) No. 1083/2006.
Delegating a part of tasks of the Certifying Authority takes place, according to art. 12 of the Council
Regulation (CE) No. 1828/2006, through concluding an agreement by the Institution. The Certifying
Authority concludes with relevant Voivodship Authority Bodies agreements in writing, which define the
scope of delegated tasks and obligations of the institutions, to which those tasks are delegated. Voivod−
ship Authority Bodies, to which tasks of the Certifying Authority are delegated, execute the function of
intermediate authorities in certification, and departments in those institutions, to which the tasks have
been delegated, are functionally autonomous of the units that execute the tasks.

10.2.1.5. Auditing Institution

For all operational programmes, functions of an Auditing Institution is fulfilled by the General
Inspector of Fiscal Control, appointed in the structure of the Finance Ministry.
Tasks of the Auditing Institution have been defined in article 62 and article 71 par. 2 of Council
Regulation No. 1083/2006.
The Auditing Institution prepares reports concerning the executed audit functions along with
necessary recommendations. Managing Authorities of particular operational programmes are responsible
for implementation of recommendations within deadlines set up by the Auditing Institution.

10.2.1.6. Institution responsible for receipt of payments

The Ministry of Finance is the institution responsible for receiving disbursements made by the EC.
Funds assigned by the European Commission as advance payments, as well as periodical payments
and the final payment are included in the state budget as its income. Subsequently funds will be
assigned from the state budget for financing of projects.

10.2.2. Monitoring Committee at the OP level

The minister relevant for issues of regional development will prepare and present to the Council of
Ministers (pursuant to article 29 of Council Regulation No. 1083/2006) in 2009 and in 2012 a report
containing information concerning the contribution of operational programmes in implementation of
cohesive policy objectives, as described in the Treaty that sets up the European Community, execution
of priorities contained in CSG and purposes of promoting competitiveness and creation of work posts,
and furthermore describing the role and tasks of the funds, pursuant to the Regulation. Information on
this subject would be used as a basic for potential changes in the application of legal and financial
instruments and procedures that bind according to them.
The minister relevant for issues of regional development shall also be responsible for development
of a general system of indicators necessary for monitoring and appraising the implementation of opera−
tional programmes.

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 Monitoring of an operational programme is aimed at assuring effective management and imple−
mentation of NSRF and of particular operational programmes. It is executed at the level of NSRF by the
institution that coordinates the NSRF and Monitoring Committee of NSRF.
At the level of an operational programme monitoring is executed by the Managing Authority and
Monitoring Committee headed by a representative of the Managing Authority. Monitoring Committee of
an operational programme may take a decision about appointing a monitoring subcommittee for partic−
ular priority axes (or groups of priority axes), to which it delegates a part of its tasks connected with
monitoring within a particular priority axis. The monitoring subcommittee operates under heading of the
Intermediate Body. In addition monitoring the effects of implementation of regional operational pro−
grammes is also performed by the Coordinating Institution of ROP.
A Committee for monitoring of an operational programme shall be appointed by the Managing
Authority within a period of three months from the date on which the European Commission informs
Poland of its decision approving the programme (pursuant to article 63 par. 1 of a Regulation of the
Council No. 1083/2006). The Committee shall also comprise representatives of the Managing Authority,
Intermediate Bodies, minister relevant for issues of regional development as coordinator of NSRF, and
as for ROP also as coordinator of ROP, minister relevant for issues of public finance, in relation to
programmes managed centrally – other ministers relevant for the scope of operation of the given pro−
gramme, representatives of territorial self−governments, social and economic partners and, in consulta−
tive function, representatives of the European Commission as well as representatives of EIB and EFI60.
In establishing Monitoring Committees the equal opportunity principles for females and males would
be applied, while a function of particular monitoring committees for operational programmes would be
supervising the conformity of implemented aid with the policy of equal opportunities.
The Monitoring Committee supervises the effectiveness and standard in management and imple−
mentation of the operational programme (pursuant to article 65 of Council Regulation No. 1083/2006).

10.2.3. National Evaluation Unit

In the years 2007−2013 evaluation will be executed on two elementary levels, and namely the
National Strategic Reference Framework and operational programmes. On the NSRF level evaluation
will concern in particular horizontal and cross−cutting issues related to more than a single operational
programme.
The National Evaluation Unit holds responsibility for working out relevant standards and coordina−
tion of measures as regards evaluations of measures executed within particular operational programmes
and performance of evaluations on the NSRF level.
The evaluation process of NSRF and operational programmes will be executed on the basis of
Evaluation Plans developed by National Evaluation Unit (NSRF Evaluation Plans) and Managing
Authorities (OP Evaluation Plans).

10.2.4. Control
For needs of fulfilling functions specified in article 60 of Council Regulation No. 1083/2006 the
Managing Authority assures the execution of two types of control in the implementation system of
operational programmes: system control – article 60a, project control – article 60b.
System control (which is an element of the task defined in article. 60a) is performed directly by the
Managing Authority or on its behalf by the Intermediate Body. Rules for system control are defined by
the Managing Authority, taking into account the existing guidelines in this respect. Project control is

60
Representatives of EIB and EFI participate only in works related to operational programmes, in which EIB and EFI make their contributions.

112
executed Managing Authority or on its behalf by the Intermediate Body. Managing Authority defines
rules for executing control and division of obligations within the system.

10.2.5. Informatic system

The minister relevant for issues of regional development is responsible for assuring functioning of
a safe system of electronic information exchange with the European Commission and granting access
accreditation to the system to institutions involved in implementation of operational programmes. Intro−
duction of data to the informatic system and implementation of a local system are responsibility of the
Managing Authority; this is done through an operational programme, in cooperation with the NSRF
coordinator.
The minister relevant for issues of regional development executes supervision over the informatic
system. The main author of the system, responsible for the establishment and development of the
informatic system, is the minister relevant for issues of public finance. In establishment of this system
use will be made of experience gained in execution of the informatic system for the years 2004−2006. To
allow correct and timely implementation of the system, appropriate training and information campaigns
will be executed addressed at future users. They will be aimed first of all on making them familiar with
benefits made possible by application of the system as modern instrument that assists the process of
NSRF implementation.

10.3. Implementation System for the “European Territorial Cooperation” Objective

10.3.1. Coordination
In the programme period of 2007−2013 within Objective European Territorial Cooperation of the EU
cohesion policy programmes of transborder, transnational and interregional cooperation will be executed.
In each programme of territorial cooperation participate at least two EU member states, and responsibil−
ity for implementation of the entire programme is assumed by the country, in which managing structures
had been allocated through mutual agreements. Independently of situation of managing structures for
particular programmes, coordination of programme implementation for European Territorial Coopera−
tion on the Polish side is responsibility of the minister relevant for issues of regional development.

10.3.1.1. Coordination between Measures Implemented within the Objective “European Territorial Cooperation” and
other Measures Implemented within EU External Policies
Programmes of the European Territorial Cooperation allow undertaking common international
projects between EU member states. In the period programme 2007−2013 transborder cooperation
programmes would also be executed on external EU borders; within those programmes projects with
participation of beneficiaries from third countries, neighbouring with EU, would be able to obtain
co−financing. Programmes on external borders would be co−financed from means of the European Neigh−
bourhood and Partnership Instrument – ENPI and implemented on the basis of separate rules assumed
for that instrument. Within ENPI transborder cooperation programmes with participation of Poland would
be executed with Ukraine, Belarus and the Kaliningrad Oblast of the Russian Federation. The Ministry
of Regional Development assures coordination of measures undertaken within Objective 3 of the EU
Cohesion Policy and ENPI.

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 10.3.2. Managing and Control

10.3.2.1. Managing Authority

In programmes of territorial cooperation, in which Poland is to fulfil managing functions, the Man−
aging Authority is the minister relevant for issues of regional development. The Managing Authority
is responsible for management and implementation of the operational programme pursuant to principles
of correct financial management. Through the ETC programme the Managing Authority prepares
a description of the system that defines procedures binding in programme implementation system in
agreement with foreign partners. The Managing Authority executes tasks defined in article 60 of Council
Regulation No. 1083/2006, with the exception specified in article 15 of Council Regulation No. 1080/
2006. Following consultations with member states that participate in a given programme, the Managing
Authority will establish a Joint Technical Secretariat. The task of this Secretariat is to assist the Manag−
ing Authority and the Monitoring Committee, and, should such a need arise, the Auditing Institution,
in execution of their tasks.

10.3.2.2. Certifying Authority

Similarly as in the case of other programmes co−financed from ERDF funding, in the structure
of the ministry relevant for issues of regional development a separate organisation unit shall be estab−
lished, which would be autonomous of the Managing Authority, and which would bear responsibility for
certification of expenditures borne by national and foreign beneficiaries within ETC operational
programmes.
Tasks of the Certification Institutions result from provisions of article 61 of the Council Regulation
No. 1083/2006. Pursuant to article 14 of the Regulation of the Parliament and Council No. 1080/2006
related to ERDF, Certification Institution in ETC programmes receives payments effected by the
Commission and makes payment to the leading beneficiary.

10.3.2.3. Auditing Institution

Execution of audit for all operational programmes is the responsibility of the General Inspector of
Fiscal Audit.
Pursuant to provisions of the Regulation of the Parliament and the Council No. 1080/2006 related
to ERDF, the Auditing Institution for ETC programmes should be in the country, in which the Managing
Authority has its seat. The audit is performed on the national level, and so for international ETC
programmes an Auditor Group shall be established, which shall comprise representatives of relevant
institutions from all EU member states participating in the given programme. The Group of Auditors for
a given ETC programme is appointed within three months since the date of submission of decision by
the European Commission on approval of the ETC programme. Works of the Auditor Group are headed
by a representative of the Certification Institution.

10.3.2.4. Monitoring Committee

A Committee for monitoring of the ETC programme shall be appointed by the Managing Authority
within a period of three months from the date on which the European Commission informs of its decision
approving the programme. The Committee shall comprise representatives of all countries involved in
implementation of the given ETC programme, of the Managing Authority, Certifying Authority and, in
consultative function, representatives of the European Commission as well as representatives of EIB
and EFI. The structure of the Monitoring Committee shall be defined separately for each ETC
programme. In works of the Monitoring Committee participants on the Polish side shall include repre−
sentatives of voivodship authorities, euroregions or other social and economic partners. Depending on
agreements concluded with foreign partners it is also anticipated that the Monitoring Committees for
ETC programmes would also be selecting projects for co−financing.

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10.3.3. Certification of expenditures borne by Polish beneficiaries of the transborder, transnational
and interregional cooperation programmes
Despite an international nature of projects implemented within ETC programmes, expenditures
borne by beneficiaries (partners) of programmes are verified and confirmed on a national level. For this
purpose each member state is to set up a control system to enable verification that products and services
being subject of co−financing have been duly delivered. The leading Beneficiary, appointed for each
operation, verifies whether expenditures presented by beneficiaries that participate in the operation
have been approved by the controllers.

10.3.4. Implementation system of ETC programmes with participation of Poland, managed by institutions
situated outside Poland
In programmes, in which managing functions are fulfilled by foreign institutions, the minister com−
petent for regional development plays the role of a national programme coordinator. The national coor−
dinator participates in development of operational programmes, detailed programme implementation
procedures, works of monitoring committees and in the process of evaluation and selection of projects.

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 11. FINANCIAL FRAMEWORK

The volume and structure of expenditures assumed within NSRF 2007−2013 was determined in
relation to the decision issued by the Council of Europe on December 2005 and decision issued by the
European Commission on August 2006, which defined expenditure thresholds from structural funds and
the Cohesion Fund, and in addition taking into consideration objectives of the assumed growth strategy
and adopted rules of NSRF implementation (specified in Part 5), as well as in relation to adopted
commitment of designating at least 60% of means of the Objective “Convergence” for execution
of measures in spheres which are most sensitive for execution of NDP.
Preparation of final proposals for division of financial resources among operational programmes
and intervention spheres of the cohesion policy (see Table 11) was further assisted by results of social
consultations and results of ex ante evaluation, including an optional evaluation of the anticipated
macroeconomic effects performed using the HERMIN model.

11.1. Basic Principles of Financial Planning

1. Calculation methods of national co−financing

Pursuant to article 53 of Council Regulation No. 1083/2006, the contribution of funds at the level of
operational programmes is calculated in relation to the total sum of eligible expenditures (public and
private expenditures) or public eligible expenditures. As regards sectoral operational programmes it is
recommended that the level of national co−financing were calculated to the value of public expenditures,
while for regional operational programmes the calculation method of the national contribution is defined
in the operational programme.
2. Own contribution of beneficiary
Financial resources of the beneficiary, which may be a territorial self−government entity or a subor−
dinate entity, designated for assuring his own contribution, must originate from own resources or loans.
Those resources cannot be replaced by resources coming from budgetary parts of particular administra−
tors, target funds or other public means. The minimum contribution of own resources shall be defined in
operational programmes and selection criteria for financing operations approved by Monitoring Commit−
tees. As for state aid schemes this contribution results from maximum levels of state aid defined in aid
programmes.

11.2. Estimated Financial Plan

The total value of means involved in NSRF execution in the years 2007−2013 would total to ca.
85.6 billion euro (in current prices). In connection with execution of NSRF, on average (up to the year
2015) ca. 9.5 billion euro would be spent annually, which conforms to ca. 5% of gross domestic product.
Of this sum:
• 67.3 billion euro would come from the EU budget,
• 11.9 billion euro from domestic public resources (including ca. 5.9 billion euro from the state
budget),
• ca. 6.4 billion euro would come from private entities.
Expenditures within the cohesion policy would be coordinated with expenditures designated for
structural instruments of Common Agricultural Policy and Common Fishery Policy as well as European

116
programmes in the sphere of enhancing competitiveness. The total sum of resources included in imple−
mentation of developmental measures, the main element of which would be NSRF, would consequently
total to more than 107.9 billion euro, including 85.4 billion from EU resources.
The total value of involved EU resources in NSRF implementation in the period 2007−2013 would
amount to 67.3 billion euro (in current prices). Of that sum over 66.5 billion euro would be assigned for
co−financing of operational programmes of the Objective “Convergence”, and over 557.7 million euro for
programmes of the Objective “European Territorial Cooperation”. In addition, over 173.3 million euro
were designated for implementation of transborder cooperation programmes within the European Neigh−
bourhood and Partnership Instrument − ENPI with participation of Poland. Within the Objective “Conver−
gence” 67% of resources would be comings from resources of structural funds (52% from ERDF, 15%
from ESF). The remaining 33% financial resources would come from the Cohesion Fund.
Within general allocation, the Council of Europe assigned financial resources of over 992 million
euro from ERDF for 5 Polish regions, in which GDP per capita (according to data of Eurostat from 2002)
is the lowest in the entire EU (voivodships: lubelskie, podkarpackie, podlaskie, świętokrzyskie, warmiń−
sko−mazurskie). Those means were supplemented by an additional contribution of ERDF amounting to
1.2816 billion euro.
The entire allocation of the Cohesion Fund shall be assigned for implementation of infrastructural
projects within OP I&E.
A detailed division of structural funds and the Cohesion Fund in Poland in arrangement by particu−
lar operational programmes of the Objective “Convergence” is as follows:
• OP Infrastructure And Environment – 41.9% of all resources (27.9 billion euro),
• Regional Operational Programmes – 24.9% of all resources (16.6 billion euro),
• OP Human Capital – 14.6% of all resources (9.7 billion euro),
• OP Innovative Economy – 12.4% of all resources (8.3 billion euro),
• OP Development of Eastern Poland – 3.4% of all resources (2.3 billion euro),
• OP Technical Assistance – 0.8% of all resources (0.5 billion euro).
The remaining financial means within both structural funds and the Cohesion Fund would be
designated for setting up a national performance reserve (2% of allocation value, i.e. 1.3 billion euro).

Table 10. Share of particular operational programmes in total allocation of means for the cohesion policy for Poland
with the source of their financing.
Operational programmes Share of the programme Source of financing
in total allocation of resources
Infrastructure And Environment 41.9% of total means ERDF, Cohesion Fund
(27.9 billion euro)
Regional Operational Programmes 24.9% of total means ERDF
(16.6 billion euro)
Human Capital 14.6% of total means ESF
(9.7 billion euro)
Innovative Economy 12.4% of total means ERDF
(8.3 billion euro)
Development of Eastern Poland 3.4% of total means ERDF (including additional
(2.3 billion euro) 992 million euro granted
by the Council of Europe)
Technical Assistance 0.8% of total means ERDF
(0.5 billion euro)

117
 From the list of above specified programmes, sixteen regional operational programmes and OP
Development of Eastern Poland have a direct regional character, related to statistical units of NUTS II.
The share of expenditures assigned for financing of those programmes within the Objective “Conver−
gence” totals to 28.3%, while the remaining part of resources is designated for implementation of hori−
zontal programmes managed by a minister relevant for issues of regional development. Some of them
contain priorities, which may be implemented on a regional level. In particular within OP Human Capital
ca. 70% of ESF means would be allocated for co−financing priorities implemented in regions.
Within the Objective “European Territorial Cooperation” the resources have been divided in the
following way:
Transborder cooperation programmes (78.6% of entire allocation, 438.5 million euro)
1. Poland−Germany (zachodniopomorskie voivodship – Mecklenburg) – 8.9% of entire allocation
(50.0 million euro),
2. Poland−Germany (lubuskie voivodship – Brandenburg) – 8.9% of entire allocation (50.01 million
euro),
3. Poland−Germany (lubuskie and dolnośląskie voivodship – Saxony) – 12.6% of entire allocation
(70.1 million euro),
4. Poland–Czech Republic – 20.8% of entire allocation (115.8 million euro),
5. Poland–Slovakia – 15.40% of entire allocation (86.0 million euro),
6. Poland–Lithuania – 7.5% of entire allocation (41.7 million euro),
7. Southern Baltic Sea – 4.5% of entire allocation (25.0 million euro).
Transnational cooperation programmes (21.4% of entire allocation, 119.2 million euro)
1. Baltic Sea Region – 8.6% of entire allocation (47.7 million euro),
2. Central and Eastern Region – 12.8% of entire allocation (71.5 million euro)
As for interregional cooperation, plans assume the implementation of interregional cooperation,
which will comprise the entire EU territory.
For measures implemented within the European Neighbourhood and Partnership Instrument − ENPI
173.3 million euro shall be designated. Two programmes of transborder cooperation are to be imple−
mented with the participation of Poland:
1. Poland−Belarus−Ukraine,
2. Poland – the Kaliningrad Oblast of the Russian Federation (or Poland – Lithuania – Kaliningrad
Oblast of the RF).
This division reflects the necessity of involving bigger financial resources in the eastern part of
Poland, which lies on the external border of the EU.
The above allocations shall be included to common international budgets for particular programmes of
the European Territorial Cooperation and the European Neighbourhood and Partnership Instrument – ENPI.

11.3. Rules for Division of Resources between Operational Programmes

The division of resources among operational programmes results from the diagnosis of the present
situation, contained in NSRF and the proposed development strategy, as well as striving at decentral−
isation in management of development processes, including EU resources. The value of resources
and principles of their designation to particular programmes, and within them into particular priorities,
point at cohesion of the NSRF strategy with the European social and economic cohesion strategy
defined in CSG for the years 2007−2013 and in NDP, which is a plan for execution of the Lisbon
Strategy in Poland.

118
 Division of resources between regional operational programmes was performed on the basis of the
regional policy strategy binding in Poland since the beginning of the 21st century. The applied algorithm
of means division was established on the basis of criteria: population criteria, wealth level and unem−
ployment rate in a given voivodship, which reflects the horizontal objective of NSRF connected with
counteracting marginalisation of the regions61. Using such an algorithm, preference is assigned to voivod−
ships of eastern Poland, which belong to the poorest EU regions, as well as areas characterised by high
unemployment rate. Data show that those areas would be less competitive, attract fewer direct invest−
ments, develop slower and take more time to reform their economies. They also get fewer resources
coming from aid funds. To overcome structural difficulties their prioritisation is necessary as compared
to other regions when making a division of aid means, as well as appropriate forming of development
strategy implemented on those areas.
Thanks to the application of the algorithm, differentiation of transfers per capita in particular voivod−
ships is maximum as 1:2.16. This still allows implementation of regional policy objectives other than
regulating and restructuring ones – utilisation of endogenic potential of all regions for establishment
of competitiveness strength in all voivodships.
The applied method of division of financial funding for ROP is a continuation of the method which is
used in the present financial perspective within IROP. This method was also subjected to a broad social
consultations process, through which obtained was support for its reuse.

11.4. National Performance Reserve

Pursuant to article 50 of Council Regulation No. 1083/2006 a reserve was made at the level of
NSRF amounting to 3% allocation within the Objective “Convergence”. Its funds would be used to
enhance relevant priorities of operational programmes following an evaluation of their execution by
30 June 2011. Division of the reserve would take place until 31 December 2011.

11.5. National Intervention Reserve

Pursuant to article 51 of the Council Regulation No. 1083/2006 a member state which use aid
within the “Convergence” Objective may on its own initiative reserve the sum of 1% of annual contribution
of structural funds for intervention in the event of unforeseen crisis situations of a local or sectoral
nature, related with social and economic restructuring or consequences of trade liberalisation. As the
intervention reserve is optional, Poland took a decision of not making such a reserve.

61
In the division of funding among particular voivodships in the Regional Operational Programmes, an algorithm was used which was based on the
following criteria:
Criterion I
Poland as a whole conforms to present eligibility criteria for areas comprised by Objective 1 of EU structural funds. This justifies the dominating role
of the population criterion in a regional division of support resources. 80% of those resources were divided in proportion to the number of inhabitants
in particular voivodships.
Criterion II
Taking into consideration inter−voivodship differentiation in the level of GDP per capita, 10% resources were divided in proportion to the number of
inhabitants in voivodships, in which the average level of GDP per capita in the years 2001−2003 was lower than 80% of the average level per capita
in Poland.
Criterion III
Taking into consideration the high unemployment rate and the threat recorded in many poviats of lasting marginalisation of considerable social
groups, 10% of support resources were allocated for those poviats in which the average unemployment rate in the years 2003−2005 exceeded
150% of the national average value.

119
 11.6. Verification of ex ante additionality rule

Determination of the level of national public expenditures in the table of additionality for the years
2007−2013 for all regions of the “Convergence” Objective (i.e. for the entire Poland) was performed by
the Ministry of Regional Development along with the Ministry of Finance. There is no need of verifying
the rule of additionality at the level of operational programmes.
Poland has submitted to the European Commission “Methodology for determination of public ex−
penditure level borne on structural objectives for development of additionality table in the years 2007 –
2013”, which was prepared pursuant to a document called “Commission Methodological Paper Giving
Guidelines on the Calculation of Public or Equivalent Structural Spending for the Purposes of Addition−
ality – working document No. 3; December 200662 ”.
Estimates related to the level of national public spending in the additionality table in the years
2007−2013 were evaluated by the European Commission. This allowed Poland to agree with the
European Commission the level of national public expenditures, which would be maintained throughout
the programming period of 2007−2013.

Results of calculations used for verification of the additionality rule ex−ante have been contained in
Table 13.

11.7. EAFRD and CFP

Expenditures within the cohesion policy would be coordinated with expenditures made through
structural instruments of the Common Agricultural Policy – EAFRD and the Common Fisheries Policy –
CFP. Total involvement of both funds in Poland would total to ca. 13.9 billion euro, of which for imple−
mentation of projects co−financed by EAFRD ca.13.9 billion euro would be designated, and ca.
0.7 billion euro from CFP.

11.8. European Investment Bank

The share of EIB in co−financing of programmes and projects defined on the basis of past experi−
ence may total to ca. 3 billion euro. This value has an indicative nature only. In particular cases this
contribution may be increased if profit generating projects require increased share of co−financing from
loans, or if appropriate forms of co−financing for programmes may be further developed. EIB may also
aid the Polish authorities and private sector entities, which may be potential beneficiaries of Community
funding as regards preparation, implementation and monitoring of programmes and projects. The bank
may grant loans both to entities from the public and private sector, as well as for common projects of the
public administration and the private sector, undertaken within public−private partnership.

11.9. Anticipated Expenditure Level for Implementation of the Lisbon Strategy

Provisions in NSRF

Despite there being no such obligation, Poland will aim to designate 60% of funding made availa−
ble within the “Convergence” Objective of the cohesion policy for implementation of the Lisbon Strategy

62
The New Programming Period 2007−2013. Commission Methodological Paper Giving Guidelines on the Calculation of Public or Equivalent
Structural Spending for the Purposes of Additionality. Working Document No. 3; December 2006

120
aims, defined in the Integrated Regional Programme (the so−called earmarking). To achieve the aim, for
particular instruments of NSRF execution average target expenditure thresholds have been set out,
included in categories used for implementation of Lisbon tasks. Those indicators have been defined on
the basis of relevant objectives of NDP and pro−Lisbon objectives of NSRF, which are implemented by
the particular operational programme, taking into account the value of assigned allocation. Values of
threshold values have been presented in Table 10.

Table 11. Abbreviated table of share of pro−Lisbon intervention categories within NSRF – convergence objective.
(Data presented in the below table are of an indicative nature only and may be modified once negotiations of particular
operational programmes with the European Commission have been completed)
OP EU contribution „earmarking” indicator
total according to intervention category OP NSRF
with attachment IV to 1083/2006
OP IE 8 254 885 280 7 831 882 929 95% 12%
OP HC 9 707 176 000 8 036 029 819 83% 12%
OP I&E 27 913 683 774 18 616 256 995 67% 28%
OP DEP 2 273 793 750 1 000 013 523 44% 2%
16 ROP 16 555 614 188 7 026 917 404 42% 11%
NSRF 66 553 157 091 42 511 100 670 63,9%

121
122
Table 12. Indicative mean annual allocation of EU resources in a division into funds and operational programmes (in euro, current prices)

EU contribution
Operational Programme Fund
Total 2007 2008 2009 2010 2011 2012 2013
The Convergence Objective
16 Regional Operational Programmes: 16 555 614 188 2 320 878 674 2 375 226 449 2 429 216 368 2 397 526 540 2 352 757 295 2 309 415 992 2 370 592 870
dolnośląskie 1 213 144 879 170 066 906 174 049 345 178 005 561 175 683 428 172 402 874 169 226 955 173 709 810
kujawsko−pomorskie 951 003 820 133 318 188 136 440 086 139 541 428 137 721 070 135 149 391 132 659 737 136 173 920
lubelskie 1 155 854 549 162 035 558 165 829 927 169 599 313 167 386 841 164 261 210 161 235 273 165 506 427
lubuskie 439 173 096 61 566 274 63 007 965 64 440 163 63 599 522 62 411 922 61 262 201 62 885 049
łódzkie 1 006 380 910 141 081 325 144 385 012 147 666 945 145 740 588 143 019 160 140 384 533 144 103 347
małopolskie 1 290 274 402 180 879 448 185 115 082 189 322 828 186 853 057 183 363 932 179 986 094 184 753 961
mazowieckie 1 831 496 698 256 751 672 262 764 000 268 736 738 265 230 990 260 278 305 255 483 592 262 251 401
opolskie 427 144 813 59 880 067 61 282 272 62 675 245 61 857 628 60 702 554 59 584 324 61 162 723
podkarpackie ERDF 1 136 307 823 159 295 364 163 025 567 166 731 209 164 556 152 161 483 379 158 508 614 162 707 538
podlaskie 636 207 883 89 187 951 91 276 456 93 351 209 92 133 416 90 413 000 88 747 457 91 098 394
pomorskie 885 065 762 124 074 542 126 979 983 129 866 293 128 172 149 125 778 779 123 461 745 126 732 271
śląskie 1 712 980 303 240 137 237 245 760 506 251 346 748 248 067 857 243 435 662 238 951 215 245 281 078
świętokrzyskie 725 807 266 101 748 602 104 131 239 106 498 187 105 108 887 103 146 179 101 246 072 103 928 100
warmińsko−mazurskie 1 036 542 041 145 309 518 148 712 216 152 092 508 150 108 418 147 305 429 144 591 843 148 422 109
wielkopolskie 1 272 792 644 178 428 736 182 606 983 186 757 718 184 321 409 180 879 558 177 547 486 182 250 754

Regional Operational Programme of Voivodship:

zachodniopomorskie 835 437 299 117 117 286 119 859 810 122 584 275 120 985 128 118 725 961 116 538 851 119 625 988
OP Development of Eastern Poland ERDF 2 273 793 750 318 755 883 326 220 157 333 635 281 329 282 913 323 134 181 317 181 567 325 583 768
OP Infrastructure and Environment, in which: Total 27 913 683 774 2 803 245 039 3 213 450 841 3 638 277 158 3 934 283 414 4 347 732 503 4 757 925 675 5 218 769 144
   ERDF 5 737 330 000 804 297 968 823 132 129 841 842 277 830 860 202 815 345 469 800 325 587 821 526 368
   CF 22 176 353 774 1 998 947 071 2 390 318 712 2 796 434 881 3 103 423 212 3 532 387 034 3 957 600 088 4 397 242 776
OP Innovative Economy ERDF 8 254 885 280 1 157 226 001 1 184 324 642 1 211 244 851 1 195 443 813 1 173 121 175 1 151 510 530 1 182 014 268
OP Technical Assistance ERDF 516 700 000 72 434 523 74 130 714 75 815 737 74 826 699 73 429 453 72 076 773 73 986 101
OP Human Capital ESF 9 707 176 000 1 360 817 999 1 392 684 131 1 424 340 441 1 405 759 510 1 379 509 630 1 354 096 998 1 389 967 291
Performance reserve Total 1 331 304 099         266 260 819 532 521 640 532 521 640
  ERDF 1 031 082 162         206 216 432 412 432 865 412 432 865
  ESF 300 221 937         60 044 387 120 088 775 120 088 775
Objective Convergence, in which Total 66 553 157 091 8 033 358 119 8 566 036 934 9 112 529 836 9 337 122 889 9 915 945 056 10 494 729 175 11 093 435 082
 ERDF, ESF 44 376 803 317 6 034 411 048 6 175 718 222 6 316 094 955 6 233 699 677 6 383 558 022 6 537 129 087 6 696 192 306
CF 22 176 353 774 1 998 947 071 2 390 318 712 2 796 434 881 3 103 423 212 3 532 387 034 3 957 600 088 4 397 242 776
 Objective European Territorial Cooperation
OP European Territorial Cooperation, including: ERDF 731 092 675 96 226 289 98 491 697 101 156 934 104 244 037 107 414 162 110 300 411 113 259 145
transborder 438 534 974 64 690 305 58 702 271 59 054 030 61 071 604 63 146 282 64 989 412 66 881 070
transfer of EISP 173 323 640 13 947 189 23 828 772 26 046 624 26 567 557 27 098 908 27 640 886 28 193 704
supranational 119 234 061 17 588 795 15 960 654 16 056 280 16 604 876 17 168 972 17 670 113 18 184 371
Objective European Territorial Cooperation ERDF 731 092 675 96 226 289 98 491 697 101 156 934 104 244 037 107 414 162 110 300 411 113 259 145
NSRF, in which: Total 67 284 249 766 8 129 584 408 8 664 528 631 9 213 686 770 9 441 366 926 10 023 359 218 10 605 029 586 11 206 694 227
  ERDF 34 069 415 893 4 769 819 338 4 881 525 788 4 992 911 448 4 932 184 204 4 845 201 735 4 760 810 860 4 886 962 520
  ESF 9 707 176 000 1 360 817 999 1 392 684 131 1 424 340 441 1 405 759 510 1 379 509 630 1 354 096 998 1 389 967 291
  CH 22 176 353 774 1 998 947 071 2 390 318 712 2 796 434 881 3 103 423 212 3 532 387 034 3 957 600 088 4 397 242 776
  Performance
reserve
(ERDF, ESF) 1 331 304 099         266 260 819 532 521 640 532 521 640
Other instruments coordinated with the cohesion policy
OP Development of Rural Areas EAFRD 13 230 038 156 1 989 717 841 1 932 933 351 1 872 739 817 1 866 782 838 1 860 573 543 1 857 244 519 1 850 046 247
OP Balanced development of the sectors
of fisheries and coastal fishing regions CFP 734 092 574 101 303 053 103 117 822 104 941 275 103 022 168 105 061 016 107 200 776 109 446 464

123
124
Table 13. Verification of the additionality principle for the programming period 2007−2013 for the Objective “Convergence” ex ante verification.
Table of public or other equivalent structural expenditure in Convergence Objective regions (in EUR millions*, 2006 prices)

 Annual average forecast in 2007 − 2013 NSRF (ex ante) Actual annual average 2004−05**

Total Of which National Strategic Outside Total Total Of which Community Support Outside Total
public Reference Framework NSRF public Framework CSF/SPD
companies (NSRF) companies (CSF) / Single
Programming Document
(SPD)

Poland + EU Poland + EU EU Poland Poland Poland Poland + EU Poland + EU EU Poland Poland Poland
1 2=4+5+6 3 4 5 6 7=5+6=2−4 8 = 10 + 11 9 10 11 12 13=11+12
+ 12 =8−10
Basic infrastructure 7 354 142 1 745 320 5 289 5 609 4 751 142 108 41 4 602 4 643
Transport infrastructure 4 215 134 893 160 3 162 3 322 2 905 134 53 20 2 832 2 852
Telecommunications
& information society 365 0 308 57 0 57 49 0 1 1 47 48
Energy 212 0 155 28 29 57 51 0 0 0 51 51
Environment & water 1 550 8 267 52 1 231 1 283 1 094 8 28 10 1 056 1 066
Health*** 1 012 0 122 23 867 890 652 0 26 10 616 626
Human resources 2 525 2 1 468 262 795 1 057 957 2 40 14 903 917
Education 709 0 527 94 88 182 146 0 3 1 142 143
Training 1 384 0 577 102 705 807 790 0 37 13 740 753
Research and development
(R&D) 432 2 364 66 2 68 21 2 0 0 21 21
Production sector 1 900 19 1 084 208 608 816 581 19 30 19 532 551
Industry**** 591 18 383 72 136 208 74 18 6 10 58 68
Services 1 039 1 600 116 323 439 353 1 22 8 323 331
Tourism 270 0 101 20 149 169 154 0 2 1 151 152
Others 1 010 1 552 99 359 458 402 1 11 4 387 391
Total 12 789 164 4 849 889 7 051 7 940 6 691 164 189 78 6 424 6 502
* Calculations include countries which are not in the Euro zone, mean annual exchange rate of 2004 and 2005
**Years of 2004−2005 for 10 member states, which joined the EU in 2004 together with Romania and Bulgaria
*** Covers data concerning Social Infrastructure and Public Health Protection
**** Performance of 2004−2005 estimated in a division into industry and services (17% and 83% of share in total expenditure).

Source: Initial estimates of MRD and MF

APPENDICES:

APPENDIX 1. DETAILED SOCIAL AND ECONOMIC DIAGNOSIS

OF POLAND

1.1. Macroeconomic Situation

In conditions of growing openness of the economy and globalisation processes, as well as taking
into account membership in the EU, the Polish economy is subject to intensified impact from the outside,
which is also reflected in its growth trends. Simultaneously, as a result of processes taking place in the
past, it is characterised by macroeconomic stability in the real and monetary spheres.
Following considerable weakening of the economic growth dynamics in the years 2001−2002, in
2003, and particularly in 2004, a clear improvement in the economic situation took place. In 2004 the
GDP growth amounted to 5.3%, which resulted mainly from the “integration impulse” and the conse−
quent growth of internal demand. In 2005 the rate of economic growth totalled to 3.5%, and in 2006
stimulation occurred once again, along with strengthening of growth trends. The GDP growth rate achieved
a level which was not recorded since 1997 and totalled to 5.8%. As of 2002 the rate of economic growth
in Poland (on average in the years 2002−2006 – 3.9%) is 2−fold quicker than the average one in EU−25
(1.9% respectively). Despite that GDP per capita expressed as PPP (purchasing power parity) totalled
to half the average value for EU−2563.

Diagram 1. Gross domestic product per capita in EU−25 in 2005

Source: Eurostat

2005 was the second consequent year of increasing the role of investments as a factor affecting
the GDP dynamics, yet despite further growth of gross outlays on fixed assets (by 6.5%, as compared to
6.4% in 2004 and 3.1% on average in EU−25) the rate of investments64 in the national economy has only
reached 18.2%, as compared to 19.8% on average in EU−25. When evaluating the dynamics of
investment processes attention should be drawn to the fact that several industrial processing plants
have executed pro−development projects in the pre−accession period and directly following accession,

63
Following including Bulgaria and Romania, in 2005 this indicator totalled to 52% of the average value for EU−27.
64
Gross outlays on fixed assets

125
 which allowed adaptation to norms and standards binding in the EU and coping with demand intensified
following accession.65 In 2006 a considerable stimulation took place in investment operation. Outlays
have increase by 16.7% (an increase at such a scale was recorded for the last time in 1997), and the
investment rate – to 20%.
The increase in pro−growth activity is also enhanced by transfer of foreign capital in the form of
direct investments. The interest in Poland keeps growing, both of major foreign concerns, as well as
small and medium enterprises. The image of Poland as a place for potential investments keeps improv−
ing, among others owing to availability of space and cost of land. Another asset is the low CIT rate as
well as cheap and professional manpower. In 2005 foreign investments reached approximately
9.6 billion USD, and in 2006 their level of 14.7 billion USD was record breaking. A positive symptom is
that – similarly as in 2004 – the majority of projects were new investments, the so−called greenfield
(their share in 2004 reached 58%).
An important factor for economic growth was foreign trade, and – despite unfavourable rate ex−
change and economic conditions – the export of goods grew quicker than their import. Consequently
further reduction of the negative exchange balance took place. This was accompanied by advantageous
changes in the goods structure. In 2005, as compared to 2004, export (in the material formulation,
in EUR) increased by 19.6%, while import by 13.8%. During the period of 2001 to 2005 export grew over
2−fold, and import by over 50%, while on average in EU−25 by more than 60% (both export and import).
The negative turnover balance amounted in 2005 to 9.7 billion EUR and was by 1.9 billion EUR (16,4%)
lower than a year earlier, and by almost 9 billion EUR (almost by half) lower than the one achieved in 2000.
The stimulation in export resulted to a large extent from restructuring measures undertaken in the past
years, which helped enhance the competitiveness of the Polish goods offer on foreign markets. The high
dynamics in export was also maintained in the following year. yet at the end of 2006, as a result of
economic stimulation, and as a consequence – of increased demand for imported goods, especially
consumer goods – the dynamics in import were hastened, and in the scale of a year increased by 23.2%,
with concurrent export growth by 22.6%. As a result deficit in goods exchange increased to 12.5 billion euro.
Trends in trade exchange were confirmed by data concerning the payment balance. Taking into
account increasing of the positive balance of current transfers (among others thanks to inflow of net re−
sources from the EU) and services, and reduction of the negative income balance, the deficit on the
current account decreased from 8.7 billion EUR in 2004 to 4.1 billion EUR in 2005, while in 2006 it
increased to 5.6 billion EUR. Its relation to GDP in subsequent years totalled to 4.3%, 1.7% and 2.1%
respectively. Despite a slight intensification in external imbalance, its scale remains insignificant, especially
in comparison to other countries, which joined the EU in 2004.66 In 2005 – despite low inflation
– a marked decrease took place of consumption dynamics, especially individual one (the increase amounted
to 1.8%, as compared to 4.3% in 2004). This has taken place among others in conditions of actual increase
in the wage fund in the national economy by approx. 3.5%, stagnation of actual income from retirement
and pension scheme benefits, increase of financial assets of households by 11.7% and their increased
indebtedness in the banking system by 22%. In 2006 a hastening was recorded in actual growth of all
elements that determine demand of the population – wages fund by ca. 6%, income from pension and
retirement allowances by ca. 6.5%, financial assets in households by over 28%, and their indebtedness by
almost 32%. As a result an increase has also taken place (by 5.2%, i.e. at a scale not recorded since 1999)
in individual consumption, and as a consequence – with concurrent high growth of investment outlays –
once again the role of domestic demand as a growth factor has increased considerably.

65
In 2003−2004 the total growth rate of investments in those enterprises (with over 49 employed persons) amounted to almost 34%, and in 2005
decreased to ca. 4.5%.
66
In 2005 this indicator was on average negative for EU−25 and totalled to 0.6%, and in 8 countries (from EU−15) it was positive, while values better
than in Poland for this relation were still recorded by France and Italy (−1.6%). The biggest external imbalance (indicator below −10%) was recorded
in Latvia, Estonia and in Malta.

126
Diagram 2. Elements of national demand (rate of changes, preceding year=100)

Source: CSO

In 2005 mean annual inflation amounted to 2.1%, as compared to 3.5% in 2004, and remained
within limits of admissible deviations from the inflation target defined by the Monetary Policy Fund
(2.5% ±1 percentage point). This trend was maintained in the first six months of 2006 when the rate of
inflation amounted to only 1%. As of 2002 – with the exception of 2004 (consequences of the accession
boom) inflation in Poland did not exceed the average EU value, and in 2006 its level was the lowest in
the entire grouping, apart from the one recorded for Finland67 .
At present the Polish economy is in the phase of booming, however its scale and lasting would
depend mainly on the fiscal policy. In the years 2001−2004 deficit of the government and self−government
sector in relation to GDP remained within the range of 3.3 and 4.8%68 and was to a large extent caused by
incorrect structure of expenditures. Over 70% of them were ‘fixed’ expenditures, which had been legally
determined. A considerable part is constituted by social transfers, which were to a large degree based on
automatic indexation mechanisms. This limits budget means, which could be allocated for infrastructural
investments, research and development, improved standard of public services and active labour market
policy. For this reason in the years 2001−2004 Poland failed to fulfil one of the most important convergence
criteria contained in the Maastricht Treaty – and namely that of maintaining the deficit in public finance
below 3% of GDP. The relation of the deficit on the public finance sector to GDP amounted in 2005 to 2.5%,
as compared to 3.9% in 2004 (following excluding OPF from the sector, which would take place as of April
2007, those deficits would grow by 1.8% GDP in 2004 and by 1.9% of GDP in 2005 respectively).
A consequence of the high deficit in the sector was – in a situation when revenues from privatisa−
tion were about to end – growing of public debt. At the end of 2000 this debt totalled to PLN 280 billion,
i.e. 37.6% of GDP, and at the end of 2005 already PLN 467.8 billion, i.e. 47.7% of GDP). Taking into
account EU calculation standards, this debt constituted 42% (following excluding OPF from the sector –
47.3%) of GDP, as compared to 63.2% on average for EU−25.
A specific feature of the Polish economy in its current stage are ongoing restructuring processes. How−
ever, since Poland’s accession to the EU activities connected with granting state aid hale been entirely
subject to EU. In 2004 state aid amounted to PLN 8.8 billion, i.e. 1% of GDP, against 0.44% of GDP in the
EU−25. Approximately 50.5% of state aid was designated for horizontal objectives, and ca. 32% for sectoral
aid (excluding transport and agriculture). Beneficiaries of state aid were mainly large state run enterprises.

67
EUROSTAT operates the so−called harmonised inflation rate, which in 2006 amounted in Poland to 1.3%, as compared to 2.2% on average in the EU
68
Pursuant to ESA 95 and on the premise that OFE remain in sector

127
 Table 14. Basic macro−economic indicators in 2000−2005

Description 2000 2001 2002 2003 2004 2005 2006

GDP (previous year =100) 104.2 101.1 101.4 103.8 105.3 103.5 105,8
Final consumption expenditure
(previous year =100) 102.4 102.5 101.5 104.7 102.9 105.1 101.8
Individual consumption
(previous year =100) 103.0 102.2 103.3 101.9 104.3 101.8 105.2
Gross outlays on fixed assets
(previous year =100) 102.7 90.3 93.7 99.9 106.4 106.5 116.7
Domestic demand
(previous year =100) 103.1 98.6 100.9 102.7 106.0 102.4 105.9
Exports of goods and services
(previous year =100) 123.2 103.1 104.8 114.2 114.0 108.0 115.1
Imports of goods and services
(previous year =100) 115.5 94.7 102.7 109.3 115.2 104.7 115.4
Prices of consumption goods
and services (previous year =100) 110.1 105.5 101.9 100.8 103.5 102.1 101.0
FDI inflow (bio USD) 9.3 5.7 4.1 4.6 12.9 9.6 14.7
Relation of the current account
of the balance of payments to the
gross domestic product (in %) −5.8 −2.8 −2.6 −2.1 −4.3 −1.7 −2.1
Relation of the balance of the
foreign trade turnovers to the
gross domestic product −7.2 −4.0 −3.7 −2.7 −2.3 −0.9 −1.5
Average exchange rate
of Zloty to Euro 4.01 3.67 3.86 4.40 4.53 4.03 3.90
* on the basis of payment balance based on transactions
Source: CSO, NBP

1.2. Public administration and the civil society

The Polish public administration shows system weaknesses which result from the historical devel−
opments, but also from the fact that the reform of the public administration during the transformation
process had no preferential character. After 1989 a fundamental change took place in the role of public
administration, from executor of social and economic policy to creator of conditions for social and
economic growth of Poland. This change, however, did not lead to complex and internally consistent
reform in functioning of public administration, in preparation to execution of new tasks.
A lasting problem of public administration is lack of stability of institutional structures (especially
central administration), which do not allow maintaining continuity of introduced reforms and implemented
policies. As regards institutional effectiveness, the main problems include: insufficient scope of
utilisation of the concept of process organisation, absence of a clear competency division, limited
abilities to organisation of providing public services, as well as the low level of standardisation of staff
management instruments.
Some of the above mentioned problems also concern the judiciary sector. In addition a significant
increase in the number of cases filed in courts (of 3 million cases annually at the beginning of the
nineties to 10 million at present), which was not accompanied by a increase in financial, technical and
staff resources, led to a phenomenon called collapse of the justiciary system the most severe symptom
of which is protraction of proceedings.

128
 Furthermore, one of long−lasting weaknesses of the Polish public administration is the problem of
corruption. In 2005 Poland was listed on the 70th position among 159 countries in an annual report of the
Transparency International ranking countries in respect of the corruption perceived, which puts us on
the last position among all EU member states.
The civil society in Poland is not fully developed, which may be proven by the lower number of non−
government organisations than in the EU−15, as well as a smaller involvement of the Poles in social
activity. Despite the availability of appropriate legal regulations, the development of partnership and dia−
logue between public administration and non−government organisations encounters difficulties connected
with absence of clear rules and procedures, as well as inadequately developed cooperation culture.
However, one should bear in mind that the development of civil society institutions is a consequence of
the development of a democratic system and fixing in the political and social system democratic proce−
dures, and – as compared to EU−15 countries, those processes have not been going on for a long time.

Diagram 3. Perceived corruption level in new member states of Central and Eastern Europe in the period 2002−2005

Source: TI Poland, www.transparencyinternational.pl

Implementation of the cohesion policy in Poland encounters difficulties connected with legal and institu−
tional barriers. The system of managing and implementation of the cohesion policy is excessively regulated,
has complicated procedures and insufficient coordination between public administration entities. The
increased number of persons employed in issues of structural funds (4390 persons at the end of 2005) was
not accompanied by stability of employment, and working conditions, including provision of technical
and informatic equipment, are insufficient to allow effective implementation of the cohesion policy.

1.3. Human Capital

Demographic changes. At the end of 2006 the population number in Poland totalled to 38.1
million. For the first time since 2002 a positive natural growth was recorded, which nevertheless could
not compensate the negative migration balance. The year 2006 was the eighth year in turn, in which an
actual population loss was noted, and the fourth year, in which the birth rate was negative. Among other
European countries the population in Poland remains still young in demographic terms, however the
age median increases (in 2004 it amounted to 36.5 – against 34.0 in 1995), which shows an ageing
trend in the Polish population.
In the years 1991−2006 the share of children and youngsters (0−17 years of age) declined by 9.6%
to approximately 20.1% of the whole Polish population. The number of persons of working age, who

129
 constitute 64.2 % of the entire population, increased by almost 2.6 million. The number of persons in
retirement age (men aged 65 and more, women aged 60 and more) is also increasing. In comparison to
1990 there are almost 1 million more people of that age. At the end of 2006 the proportion of this group
in the total population amounted to app. 15.7%, i.e. it grew by 2.9 percentage points as compared to
1990. It is estimated that after 2011 aging of the society would be taking place at a quicker pace. It is
estimated that after the year 2010 the number of people in working age would be decreasing and will total
to approximately 22.6 million people in 2020 (20.8 million in 2030). The reason for such development will
be the low fertility rate69 that has been maintained since mid−nineties. At the same time the number of
persons aged 65 and over will increase to some 8.5 million in 2020 (9.6 million in 2030). As a result of
those processes by 2030 the population of Poland will decrease in relation to 2000 by app. 2.6 million
people, and the old age dependency (demographic burden) ratio, i.e. the ratio of the number of persons
of retirement age to the number of persons of working age, will increase from the present 24% to 46%. It is
also worth noting that amongst the increasing number of elderly people, there will be persons who will be
unable to manage on their own, including the disabled persons and the persons requiring taking care of.

Diagram 4. Population structure by age in 2003 (population in age group as percentage of entire population)

* EU15 without Great Britain and Greece, NMS (new member states) without Estonia
Source: MGiP, Employment in Poland 2005, Warszawa 2005

Labour market. After six years of a deterioration on the labour market at the end of 2004 the first
symptoms of improvement were recorded, which became fixed in 2005. Gradually the number of new
work posts and employment grew, and unemployment kept systematically falling. At present an acceler−
ation of those processes is taking place. The employment ratio is, however, the lowest among EU−25
member states (in 2005 in the age group of 15−64 years 52.8% with the EU−25 average – 63.8%).
In the past years the employment structure was undergoing changes. A fall in employment in
industry and agriculture has taken place, and grew clearly in services. A high number of work posts in
the so−called ‘traditional’ sectors was eliminated – mainly in the heavy industry. In Poland the percentage
of persons employed in agriculture continues to be much higher than in EU−15. In 2005 this indicator
amounted in Poland to 17.4%, while on average in EU−25 this share is ca. 4.9% (the highest one in
Lithuania – 14%, and the lowest one in Great Britain – 1.4%). The high employment in agriculture in part

69
in 2005 it amounted to 1.24 and was the lowest value in EU−25 (on average 1.52).

130
does not fulfil productive functions, yet it absorbs registered (1.2 million persons) and concealed (esti−
mated at ca. 1 million persons) unemployment, consequently being an important factor of balancing the
labour market. In the industrial sector the percentage of employed persons decreased to 29.2% as
compared to 27.5% in EU−25. The biggest group of employed persons were those working in the service
sector – 53.4%, as compared to 67.6%.
Despite increased demand for labour, in a situation of its still high supply (it is estimated that
population in the productive age grew in 2005 by over 165 000 persons), unemployment remained high,
although its level and rate decreased as compared to the past years. At the end of 2005 job offices
registered almost 2.8 million unemployed, and the unemployment rate decreased to 17.6%, from 19% at
the end of 2004 and 20% in the years 2002−2003 (however, it still remains the highest one among
EU−25 countries70 .
Considerable regional differentiation may be observed in unemployment rate, both between voivod−
ships and within particular voivodships. As an example, at the end of 2005 in the mazowiecke voivod−
ship it ranged between 5.6% in Warsaw (the lowest unemployment rate in the poviats), and 39.8% in the
Szydłowiec poviat (one of the highest unemployment rates in Poland). In 2006 when a general fall took
place in unemployment rates, the scale of their regional differentiation did not undergo major changes.

Diagram 5. Unemployment rate according to voivodships (at the end of 2005 in %)

Source: CSO

The most difficult problems which must be solved is ineffective job seeking by young people and
lasting unemployment. At the end of 2005 the unemployment rate of young people (aged up to 24)
amounted to 34.6%, and was the highest one in EU71 . On the other hand, the number of persons who
remain jobless for over a year amounted to almost 1.4 million, and constituted 50.2% of all unemployed.
Owing to the long average period of job seeking (in the fourth quarter of 2005 – 18.4 months), the
chances of this group of unemployed persons of going back to work are insignificant, which means
intensification of poverty of those persons and those families.

70
EUROSTAT operates the so−called harmonised unemployment rate, which in 2006 amounted in Poland to 14%, as compared to 7.9% on average
in the EU
71
The average value in EU−25 was approx. 2−fold lower and in the fourth quarter of 2005 remained within the range of.: 7.3% (Netherlands) – 29.8%
(Slovakia).

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 Diagram 6. LFS unemployment rate according to education, and by age and sex in 2004

Source: LFS CSO

The most numerous and most severely affected by lasting unemployment group are persons with
the lowest qualifications. At the end of 2005 65% of unemployed had basic vocational and primary
education. However, disquieting is a high percentage of persons with higher education, which unfortu−
nately keeps increasing. They constituted 5.5% of all unemployed persons, and the unemployment rate
of this population in the fourth quarter of 2005 amounted to 7.3%72 . This means an increased mismatching
of their education to needs of the labour market.
An important factor that differentiates the situation on the labour market is the gender. Females
end their professional career earlier than males do; in many cases they also commence it later and are
characterised (at any age) by a lower employment indicator (only 46.8% in 2005, as compared to 58.9%
for males) and a lower activity. Although the situation of females on the labour market is inferior, the
difference between the employment rate of females and males in Poland and in other EU member states
is comparable. In the scale of the entire EU−25 the employment rate for women totalled to 56.3%, as
compared to 71.3% for males.

Diagram 7. Males and females in Poland and in the EU−15 in 2004

Activity rate and employment rate of females as percentage of

Activity rate in Poland and in EU−15
activity rate and employment rate of males

Source: MGiP, Employment in Poland 2005, Warszawa 2005

Membership in the EU is favourable to job migration abroad. Up to now the basic foreign market for
Poles, which absorbs considerable numbers of seasonal and long−term employees (over 300,000 per−
sons on employment contracts and many more in the mode of border exchange) was the German

72
From among all EU−25 countries, the highest rate was recorded only in Greece (7.9%), and a similar one – in Portugal (7.2%). In the remaining
countries it ranged between: 2.6% (the Czech Republic and Ireland) – 6.7% (France).

132
market. It will continue to the biggest such market, yet job migrations of the Poles are now becoming
directed at English speaking countries and highly specialised Scandinavian markets.
An important factor that impedes employment growth are high non−wage labour costs, connected
with the occurrence of the so−called tax wedge. Its value comprises all types of social charges (social
insurance contribution, which includes a high obligatory pension fund contribution), charges that the
employer has to bear to employ his staff and income tax. The high tax wedge – which in Poland equals
to over 42% – is one of the factors favourable to the existence of the “grey area”. According to estima−
tions of CSO, at the end of 2005 it included almost 7.5% of all employed persons (in 1995 less than 5%).
Education and qualifications. A positive phenomenon observed in the past years is a constant
increase of the education level of Poles, connected with growing educational aspirations. This may be
proven inter alia by growth of the gross higher level scholarisation indicator (from 13% in the academic
year 1990/1991 to almost 48% in 2004/2005). On the other hand, this was not accompanies by propor−
tional growth of appropriately qualified teaching staff, which affects adversely the education standard.
Also the directional structure of new studies was not always adapted to needs of the labour market.
As a consequence abilities of many graduates are not always acknowledged by the market not only in
Europe, but in Poland as well.
A disadvantageous phenomenon in Poland is the low participation level in pre−school education of
children aged 3−5 − around 38% (in the Western European countries this indicator ranges between 70%
to 100%). Moreover, great disproportions between urban and rural areas are observed in terms of
disseminating the pre−school education. In 2005 55% of children aged 3−5 who lived in the urban areas
attended kindergartens, whereas children living in rural areas – only 17.5%.
Poland is characterised by both a considerable percentage of persons with the lowest education
level, and a relatively small group of persons of the highest qualifications. In 2003 24% of the population
at the age of 15−64 were persons having the upper primary and lower education, whereas 30% – persons
having basic vocational education. To compare, this indicator in the EU−15 countries reached approx.
40%. Simultaneously the percentage of persons of nominally low qualifications was in Poland 14%
higher than in the EU countries. At the same time in Poland, despite the high involvement of young
people in the education at the higher level, a share of persons having the highest qualifications (in the
years 1990−2005 the number of students grew almost 5−fold, and in the academic year 2003/2004 there
were 535 students per 10,000 inhabitants, as compared to an average of 371 in EU−25), in the popula−
tion aged 15−64 remains still low. Only nearly 12% of Polish citizens has a higher education (in the
EU−15 countries – around 20%).

Diagram 8. Percentage of persons with higher education in particular age groups in 2003

Source: MGiP, Employment in Poland 2005, Warsaw 2005

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 Despite the enormous growth of the education commonness at the higher level, the faculty structure
of higher schools in Poland (with domination of humanist sciences, social sciences, business and
administration directions) diverges considerably from the structure observed in the OECD countries.
A feature that differentiates Poland from the majority of EU countries is the lower percentage of students
(in 2004 – 21.5%, as compared to 25.8% on average in the EU) on directions connected with the sciences,
as well as technical and informatic directions.
In 2005 only 4.9% of persons aged 25−64 years participates in education and training, which
classifies Poland among EU−25 member states with the lowest level of participation in education and
self−education 73 . Persons in the least favourable situation on the labour market, i.e. unemployed
persons, persons with low qualifications and older persons have only small share in this education.
Social integration In Poland since 1996 a constant trend of deepening the poverty among some
parts of the population has been observed. Despite an overall growth of income and expenditure levels,
each year a larger and larger share of the population remains below the poverty level. In 2005 below the
subsistence level lived 12.3% of the society (an almost 3−fold increase as compared to 1996). Features
that predetermine the threat of poverty include, apart from lack of a job, also the absence of appropriate
education. One should also bear in mind the existence of a large group of persons classified as underpaid
employees, i.e. persons who, despite their being employed, are threatened by poverty and social exclusion
due to extremely low wages.
In the Polish reality each next baby affect considerably a decrease of the living conditions of the
family. In 2004 43.5% of families having four or more children had at the same time an expenditure level
below the subsistence level. Also single parents that bring up children experience difficulties. In this
group in 2005 14.5% lived in the extreme poverty. Furthermore, the situation of families comprising
disabled persons is also more difficult.
The poverty is strongly correlated with the inhabitancy in small towns and in the rural areas, in
particular on the areas, where working places were closed, which were the only one or the major
employer in the nearest neighbourhood. In 2005 18.7% of rural inhabitants were threatened by poverty
against 8.2% in urban areas.
There is a problem of the discrimination on the labour market and a risk of social exclusion for such
groups as homeless people or ex−offenders. Apart from the problems of a low educational attainment and
a lack of qualifications, additionally they must face social adaptation difficulties. Additionally, the groups
threatened by the risk of social exclusion include also the youth leaving penitentiaries, foster families or
childcare centres, juvenile centres, disabled persons, inhabitants of the outermost areas and the Roma people.
Health. The health state of the Polish society keeps improving. The number of deaths per 1 000
inhabitants decreased from 10.2 in 1990 to 9.6 in 2005, including infants from 19.3 to 6.4. As a result the
average life length became longer. The average life length of males increased by 4.3 years in the past
15 years, and females – by 3.9 years.
The state of health of the Polish people is worse than the state of health of the European Union
population. The mortality rate in Poland is higher than the average in the EU Member States in all the
age groups except for the group of young women (aged 15−29). In the most disadvantageous situation
are men aged 30−59 and children at the age of 15 and less, whose death risk is by 40% higher than
children at the same age in the EU countries. the main cause of death of the Polish population at the age
of 25−64 were malicious tumours. The biggest difference as compared to EU member states occurs,
however, in the case of cardiovascular diseases. The mortality level caused by these diseases is in
Poland by approx. 80% higher than the average in the EU. Females in Poland live on average 2.5 years
shorter than those in EU−25 member states, and males – by 5 years.

73
Lower values of this indicator were only recorded in Greece, Hungary and Portugal. On average in the EU−25 this indicator totalled to 10.2%, and
the highest level was achieved in Sweden (32.1%), Great Britain and Denmark (ca. 27.5%) and Finland (22.5%).

134
Diagram 9. The high mortality rate in Poland as compared to the average level in EU member states by gender and
age groups in 2002

Men Women
Percent of surplus

Source: Strategy for health protection development in Poland for the years of 2007−2013, Ministry of Health, Warsaw 2005

Potential access to medical care services is illustrated by the number of physicians and nurses.
Poland is characterised by a relatively low ratio of the number of physicians per 1,000 inhabitants. In 2004
this ratio amounted to 2.6 and was slightly lower than in the comparable EU countries, except for Great
Britain. Also the shortage of nursing personnel is aggravating gradually (4.8 per 1,000 inhabitants).
The share of public expenditure for financing the health care tasks in Poland in 2004 amounted to
4% of GDP. It was a visibly lower level as compared to other EU countries, where it exceeds 5% of GDP
as a rule.

1.4. Infrastructure

Infrastructure fulfils crucial function connected with social and economic development. Investments
in technical infrastructure activate settlement units, act as growth factors and affect the living standard of
inhabitants of urban and rural areas. In the period of the past few years the state of infrastructure was
improved, yet it continues to diverge from the one in EU countries.
Transport infrastructure. Despite the changes that occurred in Poland in the previous 15 years
transport has remained a field that is underdeveloped, seriously underinvested and offers services of
a generally low standard to entrepreneurs and citizens, which affects adversely the general competitive−
ness of the economy. Poland – as a member state – is bound by basic objectives of the EU transport
policy, i.e. establishment of an integrated transport system, liberalisation of the transport market,
improvement of traffic safety, improvement of transport services standard.
The total length of public roads with paved surfacing at the end of 2005 amounted to 252,000 km,
as compared to 250,000 km in 2000. The total density of those roads amounted to 81.2 km per 100 km2.
The most dense network is in voivodships of southern Poland (voivodships: śląskie – 164 km, małopolskie
– 144 km), and the one with the lowest density in voivodships of eastern Poland (warmińsko−mazurskie
– 51.1 km, podlaskie – 54.6 km). As regards the latter area, their fundamental problem is lack of satis−
factory links of their main cities with Warsaw and with the rest of the country. Almost 90% paved roads
were roads with improved surfacing, as compared to 82% in 2000. In mid−2006 the length of motorways
totalled to 674 km, and expressways – 257 km. As regards the share of motorways in the total length
of roads, Poland occupies one of the last positions in Europe. The network of motorways and express

135
 ways existing in Poland is dispersed and does not ensure a traffic continuity between the main metropol−
itan centres in Poland or continuity on none of the international transit routes. This is the more important
as 13 international arterial roads of the total length of 5.5 thousand km include our country into the
network of most important trans−European links and constitute, to large degree, elements of the pan−
European transport corridors (TINA network). Furthermore, the majority of cities have no well developed
systems of through roads.
Roads are in poor technical condition. At the end of 2005 roads with good surfacing constituted
49% of the total length of national roads; those with unsatisfactory paving – 26%, and with bad paving –
24%. Over a half of the roads required more or less urgent reconstruction. In addition the majority of
roads had been adapted to traffic of vehicles with axle load of 8−10t/axle. EU standard impose the value
of 11.5 t/axle. This standard is fulfilled presently by 13% of all national roads. This means that a more
rapid deterioration of roads than the one initially assumed is to be expected.
Apart from the poor condition of the road infrastructure, also a situation in the field of the road traffic
safety is very bad. In 2005 on Polish roads died 5 444 persons, and over 61,000 persons were injured.
In conversion into 100 road accidents, the number of fatalities amounts to 14.3, while in the majority
of EU member states his indicator does not exceed 6.
The fundamental problem in rail transport is the very poor condition of its infrastructure and the
operating rolling stock. Operation work measured by the number of trains per one kilometre was lowered
in the past years by a nearly half, however, the railway network has been only slightly shortened. The
length of railways in Poland in 2000 totalled to 22 600 km and in 2004 it dropped to 20 300 km. The
density of railways decreased from 7.2 km/100 km2 in 2000 r. to 6.5 km/100 km2 in 2005, yet it exceeded
the EU average, which in this period amounted to 5 km/100 km2. A particular high density of regular
gauge railways may be observed in the highly industrialised voivodships in the south part of the country,
especially in the Śląskie voivodship (17.2 km/100 km2) and the lowest one (below 5 km/100 km2)
in Podlaskie and Lubelskie voivodships. Approximately one third of the existing railways is in insufficient
technical condition that requires imposing substantial speed limitations or ceasing the operation.
Further one third is in a good condition that requires only current maintenance works. The remaining
part is in a sufficient technical condition, which requires however an extended scope of repair works.
Degradation of installations related to electric and telecommunication tractions, as well as railway crossing
protection systems keeps progressing. A fundamental problem is also a lack of fast links between the
main cities and towns in the country, as well as including the railway system into the Trans−European
Transport Network.
The present state of intermodal transport with the involvement of the railway is highly unsatisfactory.
Because of poor condition of the railway infrastructure freight transport, both national and international,
is being implemented to an excessive extent by motor transport. In the past 10 years the share of
intermodal transport in the an overall railway transport has grown over three times, yet this transport still
constitutes a marginal part of transport operated by rail. The present network of container terminals and
logistic centres does not meet the needs. Intermodal transport with the use of the railway is currently
being operated with an involvement of 16 container terminals. Still not available is a modern network
system for monitoring of connections, allowing, at the same time, to inform clients on an actual placing
of the shipment.
Poland has 12 civil airports (International Airport Warszawa−Okęcie and 11 regional airports), as well
as 42 local airports. The state of infrastructure of airports and air traffic services is rather good, however,
serious challenger arise from the dynamic growth of air traffic. In 2005 Polish airports served over 11.5 million
passengers, i.e. by ca. 30% more than in 2004 (in Europe the average growth amounted to 6.3%).
Despite a quick growth of passenger air transport, the air mobility indicator, measured by the number
of passengers per inhabitants continues to be very low in Poland (3%) and significantly differs not only
from indicators of well developer European countries, but also from those in countries with a similar

136
development level. It is much lower than in France (35%) or Spain (55%) and lower than in Hungary
(8%) or in the Czech Republic (12%).
Poland has 4 sea ports of fundamental importance for the national economy: Gdańsk, Gdynia,
Szczecin and Świnoujście (also the port in Police has high cargo turnover). In all sea ports cargo turno−
ver amounted in 2005 to over 59.5 million tonnes, i.e. by 4.5% more than in 2004.
In the past years also a gradual advantageous change has bee taking place in the structure of
cargo turnover in sea ports. The share of general cargo keeps growing. Also container turnover and
volume of ro−ro transhipping keeps systematically growing.
The technical condition of the harbour infrastructure is not satisfactory, and consequently under−
mines significantly the competitiveness of harbours. Also unsatisfactory is the condition of the access
infrastructure to harbours, both from the sea and land, which lengthens the time of freight operations
in land−sea chains, raises costs of delivering a service and limits an assortment of the operated freights.
The unusually fast growth rate of a number of passenger cars contributed to a sudden increase
in the degree of the motorisation overcrowd in the city centres, and now also in the suburban areas.
In effect, this intensifies the transport and communications incapacity of cities, at the same time
decreasing their attractiveness in terms of the working place and place of residence, as well as the tourism
destination. Moreover, there is risk that such a situation would inhibit the inflow of foreign investors. The
most important problems may be observed in two agglomerations: Warsaw and Silesia, however the
transport incapacity is a common disadvantageous feature of Polish major cities. Apart from few excep−
tions there are no ring roads in cities and towns and the number of bridges in urban areas divided by
rivers is not sufficient. Effective public transport (rapid tram and urban rail) is a rare phenomenon, and its
poor technical condition leads to decreasing of the number of persons who use urban transport means.
Energy industry infrastructure. Almost entire energy in Poland comes from non−renewable sourc−
es. According to Eurostat, in 2004 a source of over 86% produced primary energy were solid fuels,
1% − crude oil, 5% − gas, and 8% − renewable sources. Due to such a structure of energy production
in Poland the energy industry has become one of the main sources of air pollution. On the other hand,
on average in EU−25 those proportions were as follows: 22.2%, 15%, 22% and 12% respectively, and
the remaining 29% was nuclear energy. Furthermore, the energy intensity of the economy is high (measured
by the general energy consumption related to GDP volume). Despite a considerable fall (of the biggest
country from among the ones that have been lately accepted), in 2004 it was almost 3−fold higher than
the average one in EU −25 (10 years earlier this difference was 4.6−fold).
At the end of 2005 the installed power of power plants amounted to 34,700 MW. A considerable
part of energy blocks in Poland is older than 30 years. In the last five years the loss of installed power
totalled to 0.2 thousand MW, and in order to be able to replace old installations it would be necessary to
put into operation new equipment each year.
According to estimations, taking into consideration over 30 000 MW of production capacity existing
in Poland and assuming a life cycle of a manufacturing installation amounting to 30−35 years, each year
ca. 800−1000 MW new production capacity should be established only to allow reconstruction of instal−
lations to be put out of operation. Due to regression in construction of new manufacturing capacity
taking place in Poland in a period of 5−7 years the lack of production capacity for satisfying the demand
for electric power would be observed.
The technical condition of the Polish electric power transmission network constitutes no threat for the
safety of electric power supplies to users. It requires, however, gradual modernisation and reconstruction.
The development of electric power transmission system, including transborder links, is one of prerequisites
for functioning of the EU electric power market and for improving the safety of energy supplies to users.
Also the technical condition of gas transmission pipelines may be considered to be good, and their
expansion opened possibilities to transmission of fuel from different points of the transmission system.

137
 It is still oriented, however, to the East−West line, which means that Poland depends from the infrastruc−
tural viewpoint on gas supplies from the East.
The low diversification of natural gas supplies (75% of consumed gas comes from import, of which
90% from the East) and limited possibilities of its storage are the main threat for energy safety, which the
market mechanisms are unable to solve without financial support. As regards crude oil, despite insuffi−
cient diversification of supply sources, thanks to the appropriate infrastructure that allows supplies by
sea the risk related to supplies is considerably reduced.
As opposed to the transmission network, the condition of distribution networks is much more inferior.
They were not developing at the same rate as transmission networks and as a consequence a lot of towns
in Poland has not been included by the system of gas supplies yet. A particularly poor standard of the
electric power distribution network is found on rural areas. The major part of construction of electric power
distribution networks on rural areas took place still in the fifties and sixties, which means that their consid−
erable part has already been worn out. Energy industry enterprises are not interested in making invest−
ments on those areas due to their being unprofitable. Additionally, as an effect of ongoing developmental
processes on those areas, the demand for electric power and requirements as regards its standards keep
growing. Electric power losses and balance differences total to almost 10% of gross produced energy.
Reduction of network losses executed through increased energy transmission and distribution effective−
ness would be transposed onto the measurable fuel savings and reduced environment pollution.
Environmental infrastructure. During the past several years a significant progress was achieved
in protection of the natural environment. As a result of marked limitation of energy and material intensity
in production, changes in the financing system of pro−ecological activity and adaptation of protective
norms to EU standards the adverse impact of economic operation on the natural environment was
reduced. In many spheres its state does not differ significantly from the one observed in other EU
countries. As regards pollution of soils, the situation in Poland is more advantageous. A positive symp−
tom is also the continuous increase of protected areas – in the years 1991−2005 it was 1.7−fold. In
Poland various types of protection covers 32.5% of Poland’s area (10 176 000 hectares). It is comprised
by 23 national parks, 1395 nature reserves, 120 landscape parks, 449 areas of protected landscape.
Apart from the presently existing forms of nature protection, a system of Natura 2000 protected areas is
being created. At the end of 2005 in Poland delimited were 265 Natura 2000 areas of a total area of
2 934 000 hectares, which is 9.6% of Poland’s area.
Consistently executed provisions of ecological policy, as well as processes of restructuring and
modernisation of the economy helped reduce the pressure level on the environment. Emissions of
elementary air pollution types – SO2, NOx and dusts – have decreased to ca. 55%, 38% and 76%
respectively as compared to the beginning of the nineties. Over 95% of industrial sewage is subjected to
treatment to an extent conforming to legal regulations, and in municipal economy ca. 88%, thanks
to which air quality in industrialised areas has been improved markedly, as well as – albeit to a still
insufficient extent – the quality of water in water courses. Also achieved was considerable progress in
the sphere of the industrial and municipal wastes utilisation. Unfortunately, parameters of the state f the
environment continue to diverge for mean values in EU member states, hence the trend of reducing
outlays for environment protection is disquieting (in the second half of the nineties outlays on this
purpose amounted to 1.4−1.6% GDP, at present ca. 0,6%).
Rationalisation of the sewage and water supply systems management in towns has lead to
a decrease of almost 45% of the quantity of discharged municipal sewage in 2004 as compared to 1990.
This was a consequence, inter alia, of a considerable increase in the length of the sewerage system
from 51.1 thousand km in 2000 to 80.1 thousand km in 2004, of which the length of the sewerage
system in rural areas has increased by almost 2.3−fold. Also the number of urban population that bene−
fits from sewage treatment plants has increased. Despite that in 2005 they served only 60% of total
population (in towns 85%, and on rural areas only 20%). In EU−25 member states sewage treatment

138
plants serve over 70% of the population. Only 375 towns (over 40% of all) and 416 rural communes
(approximately 1/4) in Poland had modern sewage treatment plants, with enhanced reduction of nitro−
gen and phosphorus compounds.
A Regulation of key importance for water supply and sewerage systems is the Council Regulation
of 21 May 1991 concerning treatment of municipal wastes. As regards implementation of requirements
stipulated by Regulation 91/271/EEC concerning construction of sewers obtained was: a 6−year
transition period (up to 31.12.2008) for agglomerations larger than 10 000 population equivalents and
a 10−year transition period (until 31.12.2015) for agglomerations within the range from 2 000 to 10 000
population equivalents.
Pursuant to obligations resulting from the Accession Treaty, Poland should implement Regulation
91/271/EEC of 21 May 2001 concerning treatment of municipal wastes in the following stages:
– by 31 December 2005 – reduction of 69% of total load of biodegradable loads generated by the
agglomeration;
– by 31 December 2010 reduction at the level of 86% of total load of biodegradable pollution;
– by 31 December 2013 reduction at the level of 91% of total load of biodegradable pollution
generated in the agglomeration.
Full conformity with provisions of the Regulation should be achieved by 31 December 2015.
Provisions of the above specified Regulation have been transposed by act of 18 July 2001 Water
Management Act (Dz.U.2005.239.2019 as later amended) and act of 7 June 2001 on collective water
supply and collective sewage disposal (Dz.U.2006.123.858).

Diagram 10. Percentage of total Polish population served by sewage treatment plants in the years 1995−2004

Source: Draft Index report −Poland 2004, Condition of the environment in Poland against the background of objectives and
priorities of the European Union, The Chief Inspectorate for Environmental Protection, 2005

The degree of equipping with the water supply system has been increased. In 2004 this system
amounted to 239,200 km. Considerable progress was reported in connection of inhabitants of rural
areas to collective water supply systems. In 2004 almost 2.7 million residential building were connected to
such systems on rural areas, i.e. by 16.2% more than in 2000.
In the years 1990−2004 considerable reduction was achieved in the quantities of municipal and
industrial sewage to surface water (including a clear reduction – by ca. 85% – of untreated sewage,
which was possible thanks to broad application of modern methods for municipal sewage treatment, as
well as general reduction in the total quantity of sewage.

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 The issue of land drain systems and anti−flood infrastructure (modernisation, maintaining, con−
struction and strengthening, as well as utilisation of flood protection means) in Poland remains a priority.
Long−term shortcomings related to water resource management and negligence in appropriate mainte−
nance of inland surface water, inadequate number of water retention reservoirs and the deteriorating
state of flood banks, building up of potentially endangered lands and insufficient use of natural retention
capacities of drainage basins cause an increase in flood risks. Over 3.9% of the existing water weirs with
permanent water damming and more than 26% flood banks – poses or may pose a serious risk. Over
50% structures are older than 50 years, and more than 70% – older than 25 years. Each year several
hundred to several thousand incidents connected with water table rising in rivers are recorded. From the
quantitative viewpoint flood risk is the most severe on border areas of southern and south−eastern
Poland. The most noticeable threat is posed in this respect by rivers in the river basin of Odra, Wisła,
San and Bug rivers. An important problem is flood protection of the Żuławy Wiślane region (situated on
depressed areas and the adjacent areas), where the level of flood risk is particularly serious.
Progress was also achieved in industrial and municipal wastes utilisation. The total volume of
produced wastes was reduced from 137.7 million tonnes in 2000 to 133.8 million tonnes in 2004. The
total volume of wastes produced annually in conversion per 1 inhabitant amounted to 3.6 tonnes in 2000
(in EU – 3.8 tonnes, and in the Central and Eastern European countries – 4.4 tonnes), while in 2004 –
3.2 tonnes. Also the volume of municipal dumped wastes in conversion per 1 inhabitant was decreased
from 312.8 kg in 2000 to 240.8 kg in 2004.

Diagram 11. Division of the degree of municipal wastes utilisation in 2004 (in %)

Source: CSO Statistical Yearbook RP 2005

In the sector of the economy a few Regulations are binding, which regulate in detail issues con−
nected with types of wastes and methods of their disposal. The most important ones (for which Poland
has received transition periods) comprise Council Regulation 1999/31/EC of 26 April 1999 concerning
storage of wastes as later amended) transposed to the Polish law related to landfills in act dated 27 April
2001 on wastes, and Regulation 94/62/EC of the European Parliament and Council of 20 December
1994 concerning packaging and packaging wastes as later amended), the provisions of which were
later transposed to Polish law in w act of 11 May 2001 on packaging and packaging wastes (Dz. U. of
2001 No. 63, item 638 as later amended). The following transition periods were granted as regards
implementation of Regulations related to wastes:
– transition period up to 31.12.2007 in relation to Regulation 94/62/EC concerning packaging and
packaging wastes,
– transition period up to 01.07.2012 in relation to Regulation 99/31/EC concerning landfills,
– transition period up to 31.12.2007 in relation to Regulation regulation 259/93/EEC concerning
supervision and control with respect to sending wastes to the European Community and outside
its area,
• for some groups of wastes designated for recovery from the so−called „green list”,
• for selected groups of wastes designated for recovery from the so−called „orange list”.

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 Housing infrastructure. The housing situation in Poland is characterised by quantitative and qual−
itative shortage of dwellings. In 2002 housing resources in Poland totalled to 12 523 600 dwellings,
of which almost 94 were inhabited dwellings.
Pursuant to the census the shortage of dwellings, calculated as a difference between the number
of dwellings and the value of total housing resources in Poland grew in 2002 to the level of 947 600
dwellings. The statistical deficit in dwellings (the difference between the number of households and the
number of inhabited dwellings) amounted in this period to 1 567 000 and was by over 314 000 dwellings
higher than as compared with 1988. The Polish residential housing is decapitalised. The housing crisis
affects first of all towns, where the problem of overhaul shortages is the most severe. On rural areas the
level of satisfied housing needs (as well as the technical condition of buildings) is much higher than in
towns. As was shown by data of the 2002 census, substandard dwellings totalled to 15.9% of all inhabited
dwellings (1 870 400), of which ca. 73% were dwellings being property of natural persons, while 18% are
state owned municipal dwellings.

1.5. Competitiveness of Enterprises, R&D, Information Society and Services Sector

As regards competitiveness, and hence also competitiveness of enterprises, the Polish economy
occupies the 48th position among 125 countries, which is the last position among EU−25 countries74.
This is due among others to particular protection of the labour market, uncertainty resulting from the
weakness of the institutions, corruption, insufficient protection of intellectual rights, i.e. elements inde−
pendent of the enterprises themselves. The latter ones (especially SMEs) are characterised by high
adaptative abilities in coping with competitiveness pressure on external markets. This is shown inter
alia by the high increase of labour productivity and export recorded in the past years. GDP per capita
in 2005 totalled to 50% of the EU−25 average, while labour productivity – 59%. Simultaneously there
are relatively high fiscal and para−fiscal burdens of enterprises, as well as a high share of non−wage
labour costs.

1.5.1. Research, Innovativeness

Of fundamental importance for the development of knowledge−based economy is providing sup−
port for the research and development sector and launching new technologies to enable better innova−
tiveness and competitiveness of the economy, and development of the information society.

Sector of research and development (R&D). Specific feature of financing the R&D activities is
a very low share of outlays on the R&D in relation to GDP, as well as a domination of the budgetary
financing and a small share of the economic operators in this total expenditure. In 2005 budgetary
outlays on research and development activity and non−budgetary ones amounted to 0.57% of GDP (in
EU−25 – 1.85%). Particularly disquieting is the systematic deterioration of this indicator (in 2000 it amounted
to 0.64%). Those outlays per capita amounted in 2003 in Poland to 72.45 USD (according to the pur−
chasing power parity of the dollar), and in 2003 in EU−15 – 463 USD.
The majority of resources for R&D in Poland comes from the state budget (57.7% of total outlays in
2005), while the share of business entities – only 26%, and funds coming from abroad – 5.7%. In 2004
37.4% of the total sum of current expenditures for R&D of the total current expenditure for R&D were
assigned for the basic research, financed mainly from the budgetary resources. For development works
the expenditures totalled to 38.4%, and for applied research – 24.2%.

74
According to the report of World Economic Forum Publisher in autumn 2006, pursuant to surveys collected from over 11 000 heads of companies
worldwide.

141
 The total number of persons employed in R&D (in the so−called equivalents of full time employ−
ment) in Poland constitutes only 0.44% of total occupationally active population. The indicator of the
number of researchers per 1000 employed in Poland amounted in 2004 to 4.6 and was lower than the
one recorded in the majority in EU countries (on average 5.9 in 2003, and the highest values were
recorded in Finland – 17.3 and in Sweden – 11). Only 14% of all persons employed in R&D in Poland are
employed in enterprises, while on average in EU−25 ca. 50% (including in EU−15 over 52%). The per−
sonnel of science institutes in Poland has not been so far prepared in a systemic way to manage profes−
sionally the research works and to participate actively in a transfer of knowledge to the economy. A low
mobility of researchers between the science and economy sectors does not contribute to developing
mutual understanding between these sectors and is, certainly, one of the factors that affect negatively
the transfer scale of results of the R&D activity from research and science institutes to enterprises.
As an effect the number of inventions applied for in the Polish Patent Office by national inventors
for the patent protection remained over the recent years at a very low level (approx. 2 thousand annual−
ly). On the other hand, if the number of notified patents75 is referred to the number of inhabitants, the
creativity indicator per 1 million inhabitants in Poland calculated in such a way amounted to 4,2 and was
the lowest one in EU−25, where the average value totalled almost to 128 (the highest values were
recorded in Germany and Sweden – over 300, and among countries that joined the EU in 2004 – in
Slovenia – ca. 50).
Innovativeness. Enterprises that run operation in Poland, and especially SMEs, encounter prob−
lems with access to external capital, in particular for financing innovative projects associated with higher risk.
Expenditures of industrial enterprises76 on innovative activity have increased from PLN 12.2 billion
in 2000 to PLN 14.7 billion in 2005, while the innovation intensity indicator (relation of outlays on innova−
tion activity to the sale value) to 2.9%, as compared to 3.4%. On the other hand, a study performed by
EUROSTAT has shown that in the years 2002−2004 25% of all analysed industrial and service enterprises
recorded innovative activity, as compared to ca. 42% in EU−27 (the highest shares of such enterprises
was recorded in Germany (65%) and Austria (53%) as well as Denmark, Ireland and Luxembourg (52%),
and the lowest ones – Bulgaria and Latvia (below 20%).
Technological progress is mainly taking place through modernisation of plant. In 2005 ca. 60% of
total investments were outlays for the purchase of machine and equipment. Only 10% of resources were
allocated by enterprises for research and development, and for purchase of ready technologies – almost 2.5%.
Apart from the value of expenditures, the second important indicator for measuring the innovative−
ness level of the industrial enterprises sector is the share of new and modernised goods in the
total production sold, which reflects the implementation capacity of enterprises. In 2005 this share in
industrial processing amounted to 25.1%, as compared to 18.5% in 2000.
Since the beginning of nineties the share of high technology goods in the Polish export is at the
level of 2−3% (the average in the EU countries amounts to approx. 18%). As regards high technology
Poland is recording a considerable deficit in foreign trade (in 2004 export of high technology goods was
only covered by import in 27%).
An important factor that affects the situation and growth possibilities of the sector of enterprises is
the regulation system, which is characterised by considerable instability. Frequent changes of legal
regulations, which are important from the viewpoint of the sector of enterprises (e.g. fiscal services),
lead to increased risk connected with running of business operation. Instability of the regulation system
also hinders enterprises the development and implementation of medium and long term strategies and
increases costs of their operation.

75
Notified to the European Patent Office or within the Patent Cooperation Treaty (PCT)
76
sections C, D, E with number of employees of more than 49 persons

142
 Transfer of knowledge and innovation in the economy is considerably hindered by the lack of
cooperation between business entities, as well as other entities involved in transfer of innovations to
enterprises (scientific centres, business environment institutions, representatives of central or regional
authorities). In the past years cluster type initiatives hale been commenced in Poland; up to now not
many have been put into operation, e.g. cluster Dolina Lotnicza (Airline Valley) situated mainly in the
podkarpackie voivodship, constructional cluster in the świętokrzyskie voivodship, polygraphic cluster in
the mazowieckie voivodship.
System measures in support of innovation and investment operation are fulfilled by business envi−
ronment institutions, the biggest number of which in Poland is in medium sized towns (with a population
ranging between 50,000 and 250,000) and in towns which have a population of more than 250 000 (36%
and 34% respectively). Their arrangement on the area of Poland is not uniform, and the degree of
adaptation of the offer to needs of entrepreneurs differs. A particular role in the system of business
environment institutions is played by the National Service System for SMEs (KSU) developed since
1996 by the Polish Foundation of Promotion and Development of SMEs (as of 2001 called Polish
Entrepreneurship Development Agency).

1.5.2. Information Society

It should be however noted that the strategic assessment of the readiness of Poland to the trans−
formation into the information society is not favourable. According to the World Economic Forum ranking
in 2004 Poland occupied with his respect the 53rd position among 115 classified countries. On the other
hand, in the ranking of countries best adapted to the era of new technologies Poland occupies the 32nd
position among 65 countries covered by the study77.
Expenditures for information technologies in 2005 in Poland amounted to 2.2% GDP, while in
EU−25 on average to 3% (the highest value – over 4% – in Sweden and in Great Britain).
A necessary condition – albeit an insufficient one – for establishment of an information society, and
consequently – also for achievement of cohesion objectives is propagation of more universal access to
the Internet.
In 2005 in Poland only 40% households has a personal computer, 30% had Access to the Internet,
and 16% – access to broadband Internet, while on average in EU−25 this totalled to 58%, 48% and 23%
of all households respectively. However, it is necessary to emphasise the quick rate of making up for
shortcomings in this scope.
In enterprises the level of computerisation and access to the Internet is much higher. In 2005 as
many as 93% of all enterprises worked on computers, 85% used the Internet, and 43% – had access to
broadband Internet, as compared to 96%, 89% and 63% respectively on average in EU−25.
The number of e−services provided to the citizens, business and general public services on−line is
2−3 times lower than in EU−15 countries. The advancement level of the development of public services
in Poland amounts to 35% (among EU−25 countries – 68%)78. The level of full interactivity of on−line
public services is close to 9% (in EU – 40%), which gives Poland the 3rd position from the list bottom 3.
The highest indictor of public e−services development for the citizens is noted for such services, as:
searching for jobs (74%), corporate income tax (50%), enrolment to universities (36%), and the lowest
one for: health services (2%) and recoding incidents to the police (2%).

77
The 2005 e−readiness rankings, Economist Intelligence Unit, The IBM Institute for Business Value
78
Based on research Web−based survey on electronic public services performer on the order of the European Commission by CapGemini, July 2004.

143
 1.5.3. Services Sector
The services sector keeps developing in a systematic way. In 2005 its share in creation of gross
added value amounted to 64.6%, as compared to 71.7% on average in the EU. Traditional services
(connected with trade, repairs, transport, warehousing and communications as well as hotel and cater−
ing operations) – totalled to 27.3% of gross added value (21.6% in EU−25), while services, the existence
of which is a prerequisite for modern market oriented economy (financial intermediation and services
related to real estate and companies) – 17.8% (27.4%). According to estimations the share of market
services in the gross added value totals to 49.3% and has a growing trend. The remaining part of gross
added value produced in services (15% as compared to 22.7% in EU) were non−market services. Simul−
taneously employment in services keeps growing dynamically. In 2005 it comprises 55.6% of the total
number of employed.

Table 15. Share of services in production of gross added value and number of employed persons in 2005.

Specification Employed persons Gross added value

Total 100.0 100.0
Including services: 57.3 64.6
– Trade and repairs 16.4 19.0
– Hotels and restaurants 1.7 1.2
– Transport, warehousing and communications 5.6 7.2
– Financial intermediation 2.3 4.1
– Services for real estate and companies; science 7.6 13.7
– Non−market services 20.7 15.0
– Remaining service operation 3.0 3.8
Source: CSO

According to estimations, there are opportunities of creating numerous work places in services.
Simultaneously taking into consideration the labour costs, which continue to be low in Poland, as well as
considerable resources of young qualified employees, Poland may be chosen by foreign investors as a
place for their service centres for companies and entire concerns. An example of such services may be
the already existing service centres in the scope of bookkeeping, informatics, programming etc.
Poland’s membership in the EU also opens opportunities for increasing export of Polish services to EU
member states.
Furthermore, propagation of access to electronic services would also be of importance. Investment
activities should also include informatic services and bases of central and territorial administration, as
well as the development of commercial systems and electronic services in voivodships.
A sector of the economy characterised by significant growth dynamics is tourism. In 2005 recorded
were 64.6 million arrivals of foreigners to Poland (by 4.3% more than in 2004), including approximately
5.2 million arrivals of tourists (by 6.4% more). In 2005 expenditures of foreigners in Poland amounted to
20.3 billion PLN, while expenditures of Polish citizens on domestic travel – 15.7 billion PLN, and on
foreign travel 4.8 billion PLN. Share of tourism in creation of GDP amounted to 5.6%.
Barriers that inhibit the dynamics of foreign tourist arrivals in 2005 included: insufficient promotion
of Poland as a country attractive for tourists, lack of fast traffic roads and motorways, insufficient
number and capacity of regional airports and a disadvantageous image of Poland which is perceived
as a country with a low safety level.

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Diagram 16. Arrivals of foreigners and foreign tourists in Poland in the years 2000 to 2005

tourists foreigners

Source: Ministry of the Economy based on data of the Institute of Tourism

Poland has a considerable cultural heritage, which influences the positive image of the country in
Europe and worldwide. According to the data at the end of 2005, there were around 61.5 thousand
immobile monuments, around 180 thousand mobile monuments and 6 thousand archaeological monu−
ments registered. The list of the UNESCO World Cultural Hand Natural Heritage includes 13 positions
located in Poland. However, as much as 42% of monuments listed in the register of monuments require
repair. In Poland the share of culture and cultural industries in gross added value (in 2002 − 5.2%) is high
and its value approaches that achieved by developed European countries.
One of the most universal and basic forms of the participation in culture is reading, yet for the past
few years the number of libraries has been systematically declining (in 2004 by 74 in comparison to
2003). In Poland the development of the museum network is being observed. Their exhibition activity
also increased in 2004 (668 museums presented 4 171 exhibitions, while in 2003 – 4 083). In Poland
there are no institutions called “modernity museums”, which worldwide present in an innovative and
interactive way the civilisation heritage, including the cultural heritage. The number of performance and
concerts, as well as the number of viewers and listeners keeps decreasing (in 2004 9.3 million of viewers
and listeners participated in 45 500 performances and concerts organised by theatres and musical
institutions, i.e. by 2.1% fewer than in 2003). On the other hand, a dynamic development is taking place
in the number of theatres with several cinemas. There are still disparities in an access to the culture
institutions. In urban areas – there is easier access to culture institutions, a higher supply of cultural
articles and cultural assets of both museum and contemporary nature.

1.6. Agriculture and Fishery

In 2005 arable lands occupied 15.9 million hectares (50.9% of Poland’s territory). Among the EU
countries, only France, Spain and Germany have more acreage of arable lands than Poland. However
the degree of the afforestation in Poland is relatively low, but the area of forests keeps systematically
increasing (from 8.7 million hectares in 1990 to 9.2 million hectares in 2005). In 2005 there were almost
1.8 million farms with an area of arable lands that exceeded 1 hectare. Despite systematic increasing,
the average area of a farm continues to be small and in 2005 amounted to 7.6 hectares. Agriculture is
regionally differentiated as regards agricultural culture, agrotechnique, quality of soil and water. In general,
Polish farming has maintained the traditional character. Majority of farms runs the multi−direction
production, using extensive methods. Also animal production is extensive and is mainly based on the

145
 own fodder base. Agriculture produces only 4.6%79 of gross added value, and labour productivity in
agriculture totals to less than 25% of the average productivity in the national economy. Because of the
low production intensiveness, the agriculture did not influence significantly the environment and land−
scape changes. Environmental values of rural areas in combination with huge human resources, create
conditions for the development of the eco−agriculture.
Fisheries in Poland include: Baltic fisheries, sea fisheries, inland fisheries, fish processing and the
fishing products’ market. The length of the Polish coast amounts to 528 km, where there are 59 havens,
ports and cities with a status of the fishing port. The area of the Polish sea territories on the Baltic Sea
amounts to 32.4 thousand km2, including 8,6thous. km2 of the territorial sea. The Polish fishery may in
general be divided into two elementary segments: Baltic fishery (the major part of the fleet is involved)
and deep sea fishing. At the end of 2006 the Polish fleet comprised 881 fishing boats.80 The fishing fleet
requires to be reduced and partly modified in order to fulfil sanitary and veterinary requirements, related
to the boat work safety, according to the EU regulations.

1.7. The Spatial Dimension of Social and Economic Development, including Rural Areas

Settlement system and metropolitan areas. Poland has one of the most favourable settlement
systems, i.e. a polycentric one. It is a result – inter alia – of a lack of the capital city domination and
relatively equal location of cities within the country. In the nineties the urbanisation index (i.e. a share of
cities in the overall number of citizens) was at the level of ca. 62% and did not undergo major changes.
The number of inhabitants of urban areas increased in the above−mentioned period by over 120 000. In
the years 2001−2005 the urbanisation indicator decreased to 61.4% in 2005 and the number of urban
population was decreased by 240 000, while population on rural areas increased by almost 145 000,
which resulted first of all by the negative balance of internal migrations for towns in favour of rural areas,
which was recorded since 2000.
The Polish urban system is characterised by stability as far as population structures and the distri−
bution of the centres’ size are concerned, however, spatial changes in economic activities show imbal−
ances as well as weakness in cohesion of the system. Differences in the level of economic activity
between big cities and metropolitan areas and the majority of other towns are becoming intensified,
which clearly reflects the disparities on the local labour markets. Major centres show in this respect
relatively small differences, despite the distinctness of the economy profiles (the deepening gap be−
tween Warsaw and other major cities, observed since mid−nineties, may be the first stage of polarization
of a group of major centres). They are characterised by a favourable impact on other areas within the
radius of 40−50 km. Small and medium towns located outside this area are subject to the process of
washing away of the economic functions, in particular specialised ones, that disappear as a result of the
competition of enterprises located in the major centre or in its direct neighbourhood. This phenomenon
is to a small extent compensated by a very limited and selective absorption of human resources from
smaller towns by major centres. It includes, in a form of commuting and stage migrations, mainly young
and educated employees. An increase in economic disparities (income level, unemployment rate) is
a consequence of those processes not only in the interregional scale, but also within particular regions,
including in particular voivodships.
In Poland 9 metropolitan areas may be distinguished (i.e. big cities, which together with the sur−
rounding highly developed and fast developing gminas are inhabited by at least 500 thousand of inhab−
itants): bydgosko−toruński, krakowski, łódzki, poznański, śląski, szczeciński, trójmiejski, warszawski and
wrocławski (situated in the northern, central and southern parts of Poland). None of the towns situated in

79
In 2005; together with hunting and forestry.
80
Source: Ministry of Agriculture and Rural Development.

146
Eastern Poland fulfils the population requirement which could allow its classification to metropolises.
Metropolitan areas are the main centres of research, innovation and creation of new work posts. They
concentrate industries with high added value, and in particular services for enterprises. On the other
hand, a serious obstacle in their growth is lack of sufficient infrastructure, mainly one elated to transport,
modern educational infrastructure, culture, health centres, tourist services as well as congresses and
exhibitions.
Differentiation between urban and rural areas. In Poland the living standard and its quality is
differentiated between urban and rural areas, and the elementary economic and social indicators point
at considerable developmental lagging behind of rural areas, which are occupied by almost 2/5 of entire
Polish population (in 20005 38.6%).
Insufficiently developed technical infrastructure on rural areas (for which construction costs are
significant owing to great dispersal of rural population) is one of the most serious developmental barriers
on rural areas. Lagging behind of rural areas as compared to towns still concern access to collective
sewage systems (only 12.7 % of all villages have their own collective foul sewage systems, and 85% –
collective water supply systems, while in towns those indicators achieve a value of over 90%) and
sewage treatment plants (at the end of 2004 on rural areas there were ca. 2,400 collective sewage treat−
ment plants with a total capacity of over 1 million m3/24 hours and ca. 28,800 individual rural treatment
plants). Only ca. 20% inhabitants of rural areas have access to the gas supply system (in towns over 92%).
However, those users are mainly in voivodships of southern Poland and in towns close to Warsaw sub−
urbs, as well as a part of inhabitants in western Poland, where the major part of all gas supply systems are
provided. The remaining part of Poland has a low level of accessibility to gas supply systems.
Per each 100 km2 of rural areas there are only ca. 50 km voivodship roads with paved surfacing, of
which a major part requires modernisation and reconstruction. Shortages in the road infrastructure affect
adversely chances for better education, professional mobility and development of optional operation.
Only 19% households on rural areas have access to the Internet (in major towns ca. 40%) and only
19.45 telephone subscribers per 100 persons (average value in Poland 32.7) live on rural areas.
Furthermore, also the social infrastructure on rural areas has features of lagging behind as com−
pared to towns, as well as underinvestment and insufficient adaptation to the existing needs. Insufficient
development concerns in particular cultural and tourist centres, but also schools and health care centres.
Education conditions on rural areas are much inferior to those in towns, and also the average
education standard on rural areas is as a rule lower. Less advantageous education possibilities of rural
children are due to several barriers connected with functioning of the education system on rural areas
e.g.: limited access to kindergartens, teachers with lower qualifications, substandard education offer of
secondary schools and financial situation of rural families. Choice of secondary schools depends on the
network of schools in the nearest vicinity, available transport means for commuting to school or options
of living in a boarding school, costs of commuting or living at a different location.
Rural areas are characterised by a small number and insufficient organisation of market, financial
and production institutions. To allow improved effectiveness of the Polish agriculture, of fundamental
importance is assuring non−agricultural development of rural areas and functioning of its direct vicinity
and farther located regions.
Regional differentiation (economic, social, territorial). At the NUTS 3 level Poland is a region−
ally diversified country. The range of GDP per capita among 45 sub−regions (NUTS 3) in 2003 amounted
to 4.8:1 (this is ratio between the subregion Warsaw City and the sub−region of Nowy Sącz). Also the
NUTS II level of the socioeconomic development in Poland reveals considerable regional diversity. The
highest level of socio−economic development measured by GDP per capita in 2003 was achieved in
Mazowieckie voivodship (151.5% of the national average). GDP per capita in that voivodship in the
purchase power parity amounted to 73.7% of the average value in EU−25 and approached the level of
poorer regions of European countries – e.g. some areas in Eastern Germany or Southern Italy. Also the

147
 following voivodships are characterised by the high development level: śląskie (112.4% of the average
national value) and wielkopolskie (107.5%). The area with the lowest level of GDP per capita includes
five voivodships in the northern−east and southern−east part of the country: lubelskie (69.4% of the
average national value), podkarpackie (69.8%), podlaskie (74.7%), świętokrzyskie (77.4%) and war−
mińsko−mazurskie (77.7%). GDP of the voivodships that are economically the weakest in relation to the
EU regions and to the Central European countries is within the bracket of 34−38% of the average value
for enlarged Europe. The level of GDP per capita in those voivodships is definitely lower than the level
noted in the poorest regions of Greece, Portugal and Spain at the moment of their accession to the EU.
The level in regional disparities in Poland is primarily a result of the dynamic development in the
biggest and the strongest voivodships, in particular Mazowieckie (whose development level calculated
on the basis of GDP per capita in relation do the EU−25 average (taking into consideration the purchas−
ing power of Zloty− it increased from 51% in 1995 to 73.7% in 2004 r.81), with the simultaneous slow
development of areas, where previously farms or, until recently, defence industry plants had been located
as well as historically poor regions with poorly developed non−agricultural branches of the economy.
The regionally diversified unemployment accompanies the process of the economic restructuring
and launching free market mechanisms. The most difficult situation was noted in the agricultural regions
of northern and north−eastern Poland, which remain on a low development level. At the end of 2005 the
highest unemployment rate was in voivodships: Warmińsko−Mazurskie (27.5%) and Zachodniopomorskie
(25.6%). The lowest unemployment occurred in major urban agglomerations, with a high urbanisation
level, well developed industry and services. Such was the situation in Warsaw, which had an unemploy−
ment rate of 5.6% (as compared to 13.8% in the entire mazowieckie voivodship) or Poznań, which had
an unemployment rate of 6.1% (as compared to 14.6% in the entire wielkopolskie voivodship). In the EU
the highest unemployment rate was recorded in the French overseas regions (Réunion, Guyane and
Guadelupe), and that comparable to the highest level in Poland – in some areas of the former German
Democratic Republic and Slovakia.
Regional differences in the development level depend on differences in the level of the labour
efficiency and the occupational activity. In turn, the efficiency is an effect of regional socio−economic
structures. In the fourth quarter of 2005 the employment ratio amounted to 53.7%. The highest ratio was
recorded in the following voivodships: mazowieckie (59.2%), lubelskie (57.5%) and małopolskie (56.2%),
and the lowest one in zachodniopomorskie (49.7%), śląskie, warmińsko−mazurskie and dolnośląskie
(50.7%). The lowest productivity level measured by the level of gross added value per employed person,
amounting to 80% of national average, is noted in Lubelskie, Podkarpackie and Świętokrzyskie voivod−
ships, i.e. those voivodships, where there is a high share of the employed in the hardly effective agriculture
and a low share in the highly effective services, particularly market services, of which the Mazowieckie
voivodship is a reverse and positive example.
Degraded areas. The total estimated degraded area in Poland exceeds 8 000 km2, of which indus−
trial degradation of the surface comprised: to a great extent over 1,400 km2 (0.4% of the country area),
to the middle and small extent – almost 7,000 km2 (2.2% of the entire area of Poland). On the other
hand, area endangered by industrial degradation is estimated at 39,500 km2. One should bear in mind
that since 1990 the area of devastated and degraded land that requires reclamation has been gradually
decreasing (from 93.7 thousand hectares in 1990 to 67.6 thousand hectares in 2004). In Poland, similarly
as in the other European and OECD countries, there is a problem of abandoned economic areas, including
industrial areas.
Many medium and small towns, located on the north, west and south−west of the country are
endangered by a total socioeconomic degradation due to the loss of the existing administrative, eco−
nomic and cultural functions and the current migration trends. The symptoms of the socio−economic

81
Following accession of Bulgaria and Romania – 76.8% of the average value for EU−27

148
degradation process in these locations is a growing decapitalization of urban buildings and urban space,
the devastation of monumental and cultural facilities, a limitation of business activities as well as a low
entrepreneurship level, resulting from the low occupational mobility of inhabitants. The absence of the
endogenous growth factors in combination with the low interest in investing in these areas, due to high
costs of the infrastructure modernisation and the low purchasing power of inhabitants, lead to an exces−
sive differentiation of the material status and social pathologies. However, activation of vanishing functions
of small and medium towns would help in social and economic activation of agricultural and rural areas.
Additionally, a specific problem is the management of facilities released by the army as a result of
the restructuring process of the armed forces, and of areas occupied in the past by the former Soviet
Union army. Despite the time passage (the former Soviet Union army left Poland in 1991), the problems
of integration of these areas and their utilisation have not been solved yet, which is in particular visible in
the northwest and south−west of Poland, and in case of facilities and areas transferred by the Polish
army (to be assigned for civil purposes, whose amount and territory exceeds the post−Soviet property)
this problem is important in the scale of the whole country.
Border zone areas. Areas situated in the border zone and covered by cross−border cooperation
(taking into account also NUTS III) amount almost to half the area of Poland, and the population number
on those areas amounts to over one−third of the population of Poland. A considerable part of the eastern
border of Poland is simultaneously the external border of the EU.
The development barrier constituted by situation in the border zone causes that despite the signif−
icant differentiation as regards the level of the economic and social development, these areas have
common problems. The value of GDP in the vast majority of the border sub−regions is significantly lower
than the country average, and the unemployment rate exceeds it. Also the scale of unfavourable demo−
graphic phenomena (such as for example the fall in population number, aging of the population,
a negative balance of migration) recorded on border zones is higher than in the remaining parts of Poland.
Through Poland’s accession to the EU the border has become on the one hand a factor that
intensifies the phenomenon of lagging behind, and on the other hand – one that opens new opportunities
for development. This is determined by: differentiated development level of frontier areas close to internal
and external EU borders, enhancement of economic attractiveness of regions situated at internal
borders of the EU, the fact of neighbouring with regions on various development levels (in the east –
much lower one), differences in procedures connected with border crossing, differences in transport
accessibility and spacing of border crossings, different experience in hitherto transborder cooperation.

149
 APPENDIX 2. SOCIAL CONSULTATIONS RELATED TO NSRF

Objective and legal basis for consultations

The social consultations were dedicated to draft National Strategic Reference Framework
(document adopted by the Council of Ministers on 14 February 2006). The consultations were
performed in the period from February until July 2006 and were a continuation of strategic works
commenced in 2003, aimed at development of the social and economic policy for the years 2007−
2013. Consultations of NSRF refer to the process of social consultations of the National Development
Plan (NDP) for the years 2007−2013 and Preliminary draft of National Strategic Reference Frame−
work for the years 2007−2013 (the first version of the document was approved by the Council of
Ministers on 27 September 2005).
The consultation process of NDP was commenced by a cycle of consultations of the Provisions for
NDP for the years 2007−2013, which was conducted in a regional arrangement in the period from May
to July 2004 and through thematic meetings in the period September−October 2004. Afterwards, in the
period of January to May 2005 consultations were performed for Initial Draft for NDP for the years 2007−
2013, adopted by the Council of Ministers on 11 January 2005. A series of meetings were organised, of
a national, regional and local rank, and opinions and standpoints collected were then used as a basis for
development of the subsequent version of draft NDP for the years 2007−2013, approved by the Council
of Ministers on 29 June 2005. The subsequent stage was carrying out the process of social consulta−
tions for draft sectoral and regional operational programmes prepared in the period from June until
August 2005 and approved by the Council of Ministers on 6 September 2005 together with the successive
version of draft NDP for the years 2007−2013.
The performed process of consultations for the above mentioned documents has become an fun−
damental source of knowledge and experience for works on the subsequent version of NSRF. Hence it
was desired to maintain continuity between works over NSRF, as well as over the social consultations
to enable maintaining the previous achievements.
The consultations were first of all aimed at starting a universal debate concerning the social and
economic growth of Poland with support of financial resources of EU, obtaining opinions and remarks
of environments and partners, to enable setting out the appropriate growth vision and make choices of
a strategic nature. Discussions with partners covered first of all the diagnosis and the SWOT analysis,
the arrangement of NSRF objectives, allocation structure of funding for particular programmes and the
algorithm for dividing the resources among 16 voivodships, the implementation system of structural
funds in Poland.
The necessity of conducting consultations results from Council Regulation No. 1083/2006. Article
11 of the Regulation imposes on member states the obligation of partnership (strict cooperation) in
delivery of objectives of funds with self−government, economic and social entities, as well as with other
organisations that represent the society.

Course of consultations
The process of social consultations was implemented using a cycle of conferences meetings, seminars,
lectures, by electronic mail and in the form of current correspondence. The NSRF draft was made
available on the internet pages of the Ministry of Regional Development (www.mrr.gov.pl) and on official
web pages of particular ministries involved in the programming process. It was also made possible to
send in opinions via electronic mail concerning the document in question through a specially provided
contact address in the internet portal of the Ministry of Regional Development.

150
 The consultation cycle was performed as the following modules:
• 16 conferences and regional meetings – organised by the Ministry of Regional Development and
Marshal Offices, with participation of Voivodship Authority Offices,
• thematic conferences and meetings – organised by the Ministry of Regional Development in
cooperation with ministers responsible for issues connected with the given thematic scope of
NSRF,
• cross−sectional conferences and meetings – co−organised by social and economic partners,
interested in the document owing to their scope of operation.
Meritoric discussions were accompanied by a series of information and promotional measures,
which ranged from distribution of thematic materials (for needs of the consultation process several
thematic materials were made available, which, along with the draft NSRF, were turned over to all
interested partners and available to all participants of ongoing consultation conferences) by providing
information concerning consultations on the web page www.funduszestrukturalne.gov.pl.
Right from the beginning of the consultation process, the media (the press, television) participated
in meetings and conferences. Through numerous interviews and organised programmes current infor−
mation was passed on concerning progress of works on NSRF, as well as concerning the progress of
the consultation process.

Participants of the Consultations

A total of 60 meetings and conferences have taken place, in which over 4800 persons participated.
This was one of the biggest undertakings organised on such a broad scale, connected with the develop−
ment process of national strategic documents for the years 2007−2013.
Invitations to participate in social consultations were send among others to: partners on the regional
and local level – territorial self−government entities (representatives of voivodship councils, gmina
authorities, county authorities, municipal authority offices and the subordinated budgetary entities),
representatives of organisations that associate entrepreneurs and the business environment, trade unions,
non−government organisations, culture institutions, research and development centres, academic
milieus, church authorities, and autonomous experts as well. In particular meetings participated repre−
sentatives of territorial government administration bodies (combined administration), parliamentarians
and invited representatives of the European Commission, as well as local and regional media.

Remarks reported during consultations and the way of their including in NSRF
Participants of the consultation process associate hopes with the document which result from the
development strategy of Poland stipulated in it. The notified remarks focus first of all on the strategic part
of the document and on the method of division of financial resources, especially among 16 regional
operational programmes. A lot of valuable remarks concerned the necessity of introduction of modification
to the form of NSRF. In the majority of cases they concerned the following areas:
• diagnosis and SWOT analysis – indicated was insufficient coherence of the document, in
which elements of the diagnosis were not transposed in the part connected to the SWOT analysis,
and the quoted large number of figures did not sufficiently illustrate the processes and phenomena
taking place in Poland in the past few years. As a result of notified remarks the diagnosis was
modified and additionally in some scopes it was appropriately supplemented. In addition correc−
tions were made to the SWOT analysis, which in its present form better reflects the situation on
the starting point of NSRF delivery.
• objective of NSRF – attention was drawn to contradicting objectives in NSRF, ie. pressure on
the one hand on the development of competitiveness, and on the other hand on enhancing the
coherence degree of Poland. The debate enabled modification of the main objective and of the

151
 setting of particular horizontal objectives. Elements that justify the delivery of NSRF objectives
were discussed in more detail, and simultaneously were associated with provisions of Strategic
Community Guidelines. As a consequence of the postulate an additional objective was intro−
duced, i.e. “Development of rural areas”, the delivery of which would enable effective coordina−
tion of the cohesion policy and development policy of rural areas. In response to the notified
numerous problems connected with adaptation of public administration to fulfilment of its functions
a new horizontal objective was formulated concerning administration, aimed at improvement of the
functioning standard of public institutions and development of partnership mechanisms.
• allocation of financial resources to programmes, including proposals for algorithms of
resources division to 16 ROP – on the basis of the proposed three options for division of
resources and in response to numerous remarks, the Ministry of Regional Development recom−
mended to the Council of Ministers a choice of allocation which had the biggest support of self−
government and social environments, i.e. option 80/10/10, which took into consideration the
number of inhabitants, GDP per capita and the unemployment rate in poviats respectively.
Simultaneously maintained was the decision concerning additional support for the five poorest
voivodships in Poland and EU through delivery of OP Development of Eastern Poland.
• implementation system – the notified remarks concerned the necessity of simplification of the
presently applied procedures, roles of particular state institutions, as well as the banking sector
in the system. Results of discussions helped work out stipulations concerning regulation of the
issue of financial flows. In response to the remarks it ought to be emphasised that ultimate
functions of the implementing authority would be entrusted to an institution chosen through
public procurement granting.
• limits and execution of the Lisbon Strategy objectives in ROP – doubts were expressed as
to the value of resources designated for execution of the Lisbon Strategy (60% of resources
available within the “Convergence” Objective, as potential threat of excessive burden to ROP by
a defined category of expenditures, which does not take into consideration the specific nature of
particular regions. Yet in particular operational programmes this level would vary and will
depend on the priorities defined in it.
• transport infrastructure – several postulates concerned the necessity of considerable invest−
ments in modernisation and development of the transport infrastructure. Attention was drawn to
the fact that its condition is a prerequisite for success of other development undertakings in
Poland, so this issue was significantly emphasised within OP Infrastructure and Environment.
• coordination of sectoral and regional policy – participants of the consultations considered
the importance of both policies and their co−dependencies. Attention was drawn to the fact that
execution of the growth policy requires assuring strict relations of sectoral and horizontal meas−
ures of the government with the regional policy of the state and self−government authorities. Also
emphasised was the importance of clear demarcation of measures within particular operational
programmes. Those issues have only been partly solved in NSRF, and the appropriate coordination
of sectoral and regional policy would be regulated with regard to legal aspects within the act on
principles for execution of the growth policy.

152
APPENDIX 3. TABLE OF EXPENDITURES WITHIN PARTICULAR
EARMARKING CATEGORIES

The data presented in the below table are merely of an indicative nature and may be modified on
completion of negotiations with the European Commission concerning particular operational programmes.

code thematic priority EU contribution (according to intervention categories “earmarking”

from attachment IV to 1083/2006 indicator
according to OP total

R&DT, INNOVATIONS ENTREPRENEURSHIP 10 754 551 360.7 16.2%

1 R&DT activity performed 16 ROP 64 330 657.4
in research centres OP DEP −
OP I&E − 422 322 607.4 0.6%
OP HC −
OP IE 357 991 950.0
2 Infrastructure connected with R&DT 16 ROP 337 096 495.4
OP DEP 129 616 598.0
OP I&E 225 000 000.0 1 719 175 093.4 2.6%
OP HC −
OP IE 1 027 462 000.0
3 Technology transfer and improvement 16 ROP 320 277 290.0
of cooperation network OP DEP 48 207 879.0
OP I&E − 618 638 169.0 0.9%
OP HC −
OP IE 250 153 000.0
4 Support for R&DT. in particular SME 16 ROP 147 071 452.1
OP DEP −
OP I&E − 873 788 502.1 1.3%
OP HC −
OP IE 726 717 050.0
5 Services with respect to advanced 16 ROP 463 839 734.8
support for enterprises OP DEP 50 709 052.0
and groups of enterprises OP I&E − 678 758 406.8 1.0%
OP HC −
OP IE 164 209 620.0
6 Support for SMEs for promotion 16 ROP 186 572 298.5
of environment friendly products OP DEP −
and processes OP I&E − 186 572 298.5 0.3%
OP HC −
OP IE −
7 Investments in enterprises which 16 ROP 518 937 532.1
are directly connected with the OP DEP 129 616 598.0
sphere of research and innovations OP I&E − 1 676 472 380.1 2.5%
OP HC −
OP IE 1 027 918 250.0

153
 code thematic priority EU contribution (according to intervention categories “earmarking”
from attachment IV to 1083/2006 indicator
according to OP total

8 Other investments in enterprises 16 ROP 1 526 909 148.4

OP DEP −
OP I&E − 3 465 854 974.4 5.208%
OP HC 28 572 696.0
OP IE 1 910 373 130.0
9 Other measures aimed at stimulation 16 ROP 691 144 443.0
of research. innovations OP DEP 98 916 931.0
and entrepreneurship in SMEs OP I&E − 1 112 968 929.0 1.7%
OP HC −
OP IE 322 907 555.0
INFORMATION SOCIETY 3 950 516 362.8 5.9%
10 Telecommunications infrastructure 16 ROP 628 656 225.9
OP DEP 239 812 479.0
OP I&E 150 000 000.0 1 018 468 704.9 1.5%
OP HC −
OP IE −
11 Information and telecommunication 16 ROP 194 960 413.2
technologies OP DEP −
OP I&E − 514 355 069.2 0.8%
OP HC 79 726 656.0
OP IE 239 668 000.0
12 Information and communication 16 ROP −
technologies (TEN−ICT) OP DEP −
OP I&E − 150 000 000.0 0.2%
OP HC −
OP IE 150 000 000.0
13 Services and applications for 16 ROP 383 488 832.6
the citizens OP DEP 15 307 179.0
OP I&E − 1 058 796 011.6 1.6%
OP HC −
OP IE 660 000 000.0
14 Services and applications for SMEs 16 ROP 141 481 144.1
OP DEP −
OP I&E − 670 970 597.1 1.0%
OP HC −
OP IE 529 489 453.0
15 Other measures aimed at improving 16 ROP 72 932 787.9
access of SMEs to information OP DEP −
and communication technologies OP I&E − 537 925 979.9 0.8%
and their effective use OP HC −
OP IE 464 993 192.0
TRANSPORT 16 039 605 569,2 24,1%
16 Railways 16 ROP 326 648 037.9
OP DEP −
OP I&E 509 092 784.0 835 740 821.9 1.3%
OP HC −
OP IE −

154
code thematic priority EU contribution (according to intervention categories “earmarking”
from attachment IV to 1083/2006 indicator
according to OP total

17 Railways (TEN−T networks) 16 ROP −

OP DEP −
OP I&E 3 938 020 619.0 3 938 020 619.0 5.9%
OP HC −
OP IE −
20 Motorways 16 ROP −
OP DEP −
OP I&E 1 700 068 500.0 1 700 068 500.0 2.6%
OP HC −
OP IE −
21 Motorways (TEN−T networks) 16 ROP −
OP DEP −
OP I&E 7 775 257 732.0 7 775 257 732.0 11.7%
OP HC −
OP IE −
26 Multimodal transport 16 ROP 107 244 121.6
OP DEP −
OP I&E − 107 244 121.6 0.2%
OP HC −
OP IE −
27 Multimodal transport 16 ROP −
(TEN−T networks) OP DEP −
OP I&E 112 268 041.0 112 268 041.0 0.2%
OP HC −
OP IE −
28 Intelligent transport systems 16 ROP 99 725 857.0
OP DEP 107 935 053.0
OP I&E 100 000 000.0 307 660 910.0 0.5%
OP HC −
OP IE −
29 Airports 16 ROP 342 987 865.8
OP DEP −
OP I&E 406 701 031.0 749 688 896.8 1.1%
OP HC −
OP IE −
30 Ports 16 ROP 20 996 133.0
OP DEP −
OP I&E 492 659 794.0 513 655 927.0 0.8%
OP HC −
OP IE −
32 Inland watercourses 16 ROP −
(TEN−T networks) OP DEP −
OP I&E − − 0.0%
OP HC −
OP IE −
ENERGY 1 528 218 401.1 2.3%
34 Electric power 16 ROP − 213 948 000.0 0.3
(TEN−E networks) OP DEP −

155
 code thematic priority EU contribution (according to intervention categories “earmarking”
from attachment IV to 1083/2006 indicator
according to OP total

OP I&E 213 948 000.0

OP HC −
OP IE −
36 Natural gas (TEN−E networks) 16 ROP −
OP DEP −
OP I&E 206 024 000.0 206 024 000.0 0.3%
OP HC −
OP IE −
38 Crude oil derivative products 16 ROP −
(TEN−E networks) OP DEP −
OP I&E − − 0.0%
OP HC −
OP IE −
39 Renewable energy: wind energy 16 ROP 44 451 251.3
OP DEP −
OP I&E 172 123 711.0 216 574 962.3 0.3%
OP HC −
OP IE −
40 Renewable energy: solar energy 16 ROP 45 144 659.9
OP DEP −
OP I&E 12 909 278.0 58 053 937.9 0.1%
OP HC −
OP IE −
41 Renewable energy: biomass 16 ROP 61 626 081.6
OP DEP −
OP I&E 202 245 361.0 263 871 442.6 0.4%
OP HC −
OP IE −
42 Renewable energy: hydroelectric 16 ROP 83 715 407.7
energy, geothermal energy and others OP DEP −
OP I&E 43 030 928.0 126 746 335.7 0.2%
OP HC −
OP IE −
43 Energy effectiveness, 16 ROP 118 463 640.5
combined production (cogeneration), OP DEP −
energy management OP I&E 324 536 082.0 442 999 722.5 0.7%
OP HC −
OP IE −
ENVIRONMENT PROTECTION AND RISK PREVENTION 2 310 478 780.0 3.5%
52 Promotion of clean municipal 16 ROP 98 215 892.0
transport means OP DEP 179 891 754.0
OP I&E 2 032 371 134.0 2 310 478 780.0 3.5%
OP HC −
OP IE −

156
code thematic priority EU contribution (according to intervention categories “earmarking”
from attachment IV to 1083/2006 indicator
according to OP total

ENHANCING ADAPTATIONAL ABILITIES OF EMPLOYEES,

ENTERPRISES AND ENTREPRENEURS 1 537 055 366.0 2.3%
62 Development of systems and strategies 16 ROP −
for lifelong learning in enterprises; OP DEP −
training and services in favour OP I&E − 761 847 584.0 1.1%
of enhancing adaptation abilities OP HC 761 847 584.0
of employees to changes; promotion OP IE −
of entrepreneurship and innovation
63 Development and propagation 16 ROP −
of innovative and more effective OP DEP −
forms of work organisation OP I&E − 147 080 415.0 0.2%
OP HC 147 080 415.0
OP IE −
64 Development of specialist services 16 ROP −
related to employment. training OP DEP −
and support for restructuring of OP I&E − 628 127 367.0 0.9%
sectors and enterprises. development OP HC 628 127 367.0
of anticipation systems related to OP IE −
changes in the sphere of employment
and demand for qualifications and future
requirements concerning employment
and qualifications
IMPROVED ACCESS TO EMPLOYMENT AND ITS LASTING NATURE 3 110 703 624,0 4,7%
65 Modernisation and strengthening 16 ROP −
institutions of the labour market OP DEP −
OP I&E − 685 458 725.0 1.0%
OP HC 685 458 725.0
OP IE −
66 Implementation of active 16 ROP −
and preventive measures OP DEP −
on the labour market OP I&E − 771 588 426.0 1.2%
OP HC 771 588 426.0
OP IE −
67 Measures in favour of active ageing 16 ROP −
and prolongation of professional life OP DEP −
OP I&E − 24 710 455.0 0.0%
OP HC 24 710 455.0
OP IE −
68 Support in favour of self−employment 16 ROP −
and establishing business operation OP DEP −
OP I&E − 882 068 047.0 1.3%
OP HC 882 068 047.0
OP IE −

157
 code thematic priority EU contribution (according to intervention categories “earmarking”
from attachment IV to 1083/2006 indicator
according to OP total

69 Measures in favour of increasing 16 ROP −

permanent share of females in OP DEP −
employment and their professional OP I&E − 487 960 274.0 0.7%
development in the perspective OP HC 487 960 274.0
of reducing gender discrimination OP IE −
on the labour market and better coping
with professional and private life,
and in particular better access to care
and educational services for children
and dependents.
70 Defined measures in favour of increasing 16 ROP −
the share of migrants in employment OP DEP −
in the perspective of strengthening OP I&E − 258 917 697.0 0.4%
their social integration OP HC 258 917 697.0
OP IE −
IMPROVEMENT OF SOCIAL INTEGRATION OF PERSONS
IN A DISADVANTAGEOUS SITUATION 354 274 281.0 0.5%
71 Paths of integration and returning 16 ROP −
to work of persons in inferior OP DEP −
position; counteracting discrimination OP I&E − 354 274 281.0 0.5%
in access to the labour market OP HC 354 274 281.0
and progression of vocational career. OP IE −
as well as promotion of acceptance for
diversity in the work place
IMPROVEMENT OF HUMAN CAPITAL QUALITY
72 Development. starting and 16 ROP −
implementation of reforms in education OP DEP −
and training systems to improve OP I&E − 1 621 334 546.0 2.4%
employment possibilities. improving OP HC 1 621 334 546.0
the adaptation level of primary OP IE −
and vocational education and learning
to the needs of the labour market.
and systematic upgrading qualifications
of the education system employees
in the perspective of economy based
on innovation and knowledge
73 Measures in favour of increasing 16 ROP −
the share in lifelong education OP DEP −
and learning, in particular through OP I&E − 816 735 316.0 1.2%
undertakings aimed at limiting OP HC 816 735 316.0
premature giving up scholarisation OP IE −
and minimising gender discrimination
as well as through measures aimed
at improving the standard and access
to education and learning on the
primary, vocational and higher levels

158
code thematic priority EU contribution (according to intervention categories “earmarking”
from attachment IV to 1083/2006 indicator
according to OP total

74 Development of human potential 16 ROP −

with respect to research OP DEP −
and innovations, in particular OP I&E − 487 627 334.0 0.7%
through postgraduate studies OP HC 487 627 334.0
and training for scientists and through OP IE −
system cooperation between
universities, research centres
and enterprises.
Total EU contribution pursuant to intervention categories
defined in attachment IV to regulation 1083/2006 42 511 100 940.8
Total EU contribution within NSRF for Convergence objective 66 553 157 091.0 63,9%

159
 APPENDIX 4. COMMUNITY INITIATIVES

JEREMIE Initiative (Joint European Resources for Micro to Medium Enterprises) is a common
initiative of the European Commission and the European Investment Bank, in order to promote better
access to finance for the development of micro, small and medium−sized enterprises. The JEREMIE
initiative sets out a scheme for deployment of structural funds, which is beyond the grant system and
which assumes support for activities that use instruments of financial engineering, pursuant to art. 44 of
Council Regulation 1083/2006. Added value within the JEREMIE initiative is the possibility of using
structural funds to strengthen renewable market financial instruments used to support SMEs, possibility
of flexible selection of the instrument set depending on regional or national needs, avoiding the applica−
tion of the “n+2/n+3” principle, access to knowledge and experience of the EIB Group, as well as the
possibility of attracting additional funds from the private sector, resources of the EIB Group and other
international financial institutions.
The JEREMIE initiative is an important element for enabling an improvement in functioning
conditions for micro, small and medium−sized enterprises in EU member states. Poland is interested
in executing activities in this scope and does not rule out the possibility of making use of possibilities
offered within the JEREMIE initiative in areas, in which there are the biggest gaps in access to financing
for SMEs.
JESSICA Initiative (Joint European Support for Sustainable Investment In City Areas) is a common
initiative of the European Commission, the European Investment Bank and the Council of Europe Devel−
opment Bank, in order to promote sustainable investment, and growth and jobs, in Europe’s urban
areas. The JESSICA initiative assumes setting up special funds for urban development or trust funds,
supported with structural funds, the task of which would be assisting – with the use of financial instru−
ments – projects implemented within integrated plans for municipal development.
The JESSICA initiative responds to development needs of urban areas which are of key impor−
tance for stimulation of growth in a local, regional and national scale. Poland is aware of challenges
connected with development of urban areas and accepts with satisfaction the Commission’s initiative in
this respect.
JASPERS Initiative (Joint Assistance In Supporting Projects In European Regions) is a common
initiative of the European Commission, the European Investment Bank and the European Bank for
Reconstruction and Development (EBRD), used to assure technical assistance to new EU member
states in preparation of infrastructure related investments in the sector of transport and environment.
Support of JASPERS experts will be an important element contributing to effective preparation of
selected investment projects in Poland in the years 2007−2013. In the first instance support will be
granted to projects in sectors, in which Poland has had little experience up to now, and which require
execution of in−depth analyses (especially as regards state aid and environment related issues), as well
as model projects, so that solutions worked out in them could be applied in other similar projects. To
maximise effects of the JASPERS initiative, this support would also be used for preparation of horizontal
guidelines, which would be applicable both for bigger and for smaller projects.

160